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Kenco Engineering Corporation : strategy-driven costing and lean management

Author: James T Mackey; H David Brecht; Vernon Hughes
Publisher: London : SAGE Publications Ltd, 2017.
Series: SAGE Knowledge., Cases.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
This case illustrates a strategy-driven costing system combining ideas from lean management and the Theory of Constraints (TOC) to align performance measures and continuous improvement (CI) decisions with strategy. The primary theme is that a costing system can be integrated with and used to promote an organization’s strategies to maintain competitive advantage. This case demonstrates that cost accounting can be  Read more...
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Genre/Form: Electronic books
Case studies
Additional Physical Format: Print version:
Mackey, James T.
Kenco Engineering Corporation.
London : SAGE Publications Ltd, 2017
(OCoLC)1017714718
Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: James T Mackey; H David Brecht; Vernon Hughes
ISBN: 9781526427977 1526427974
OCLC Number: 1103331914
Notes: Originally Published InMackey, J. T., Brecht, H. D., & Hughes, volume (2010). Kenco Engineering Corporation: Strategy-driven costing and lean management. IMA Education Case Journal, 3(2), Article 2.
Description: 1 online resource (1 online resource) : illustrations.
Series Title: SAGE Knowledge., Cases.
Responsibility: James tome Mackey, H. David Brecht, Vernon Hughes.

Abstract:

This case illustrates a strategy-driven costing system combining ideas from lean management and the Theory of Constraints (TOC) to align performance measures and continuous improvement (CI) decisions with strategy. The primary theme is that a costing system can be integrated with and used to promote an organization’s strategies to maintain competitive advantage. This case demonstrates that cost accounting can be more than a full-cost allocation scheme. It can encourage adaptation in an unstable environment, for example, as Kenco uses accounting data to manage continuous improvement. A distinguishing feature of this case is the use of strategic cost drivers as more representative of cause and effect (investments in fixed costs) than operational activities that may only indirectly influence capacity costs. Where time is a problem, or students lack sufficient exposure, the instructor has presented some of the earlier questions as a lecture. Where preparation has been sufficient, the order of the questions is suggestive.

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