Designing Cost Management Systems to Support Business Decision-Making (eBook)

This book illustrates the importance effective cost management systems in

providing a supportive environment in which reliable and relevant management

information can be generated. Such a cost management system is only attainable

if the importance of key business, operational and stakeholder requirements are

recognised within the organisational context. In illustrating this importance, this

book provides several case studies as examples thereof. The first two case studies

focus on the engineering sector and illustrates the development of a cost

management system in a water recycling context; and the design of a budgetary

system in a mining engineering context. The remaining case studies focus on the

services sector, including cost management systems for a digital technology

services provider and a medical insurance services provider; an alternative

activity-based costing approach for a public sector services provider; and finally

a re-designed value stream for an automotive services provider. Academic

researchers and industry managers in the fields of management accounting and

financial management, as well as engineering and operations management, will

find value in the experiences described herein.

Pieter Buys is Research Director: Management Cybernetics Research Entity and

Professor of Accounting Sciences at the North-West University, South Africa. He

holds a Ph.D. in management accounting and is Certified Management Accountant

(CMA). His research focuses on management accounting and business process

re-engineering. Previously, he occupied management positions in Canada and

South Africa.

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This book illustrates the importance effective cost management systems inproviding a supportive environment in which reliable and relevant managementinformation can be generated. Such a cost management system is only attainableif the importance of key business, operational and stakeholder requirements arerecognised within the organisational context. In illustrating this importance, thisbook provides several case studies as examples thereof. The first two case studiesfocus on the engineering sector and illustrates the development of a costmanagement system in a water recycling context; and the design of a budgetarysystem in a mining engineering context. The remaining case studies focus on theservices sector, including cost management systems for a digital technologyservices provider and a medical insurance services provider; an alternativeactivity-based costing approach for a public sector services provider; and finallya re-designed value stream for an automotive services provider. Academicresearchers and industry managers in the fields of management accounting andfinancial management, as well as engineering and operations management, willfind value in the experiences described herein.