Frederick W. is considered Taylor as the founder of the theory cost, and the application of this methodology to the industry, which is called Taylorism, is the basis of production. Taylor turned to divide the production process, a low expression and found that at each stage of that there were movements and ways of doing that, if improved, would save small amounts of time and resources than the sum of a whole process would give significant productivity gains.
Taylor published his findings in 1912 and its findings are based on the explosion of the U.S. manufacturing industry in the first third of the twentieth century. The move to mass production is often called Fordism, referring Henry Ford who won applying Taylorism to the automotive industry.
ACCOUNTING: EFFECTIVENESS AND EFFICIENCY
Accounting is the science dedicated to calculating the figures generated by the production process.
The accounting will be effective when gather as much information on every aspect of production, so any decision taken on the basis of such information is fully consistent with reality.
However, obtaining information itself generates a cost in staff time and resources which makes efficient although not profitable, so it loses economic sense. That is why accounting is understood to be preferable to give up a portion of the information in exchange for lower costs (staff, resources and time) in his generation. We thus return to an efficient accounting, which can be defined as that Cuto cost is lower than the profit increase resulting from decisions based on such information.
STANDARDS AND PRODUCTION COST
The cost is a standard unit of measurement used to shred process and analyze the costs of a more analytical as possible. Are expressed in real units (time, production, monetary units, etc.) and to develop them is necessary to obtain information from every section of the company.
For example if a factory seats have a carpenter and an upholsterer, we need to go to the carpentry section for the time it takes a carpenter to make the chair and then the upholstery to determine the time it takes the upholsterer in upholstery. We could define a standard for the carpenter expressed in chairs / hour, and another to the upholsterer, and can use that information, for example, to calculate the staff needed to keep production up permanently.
RATIOS AND PRODUCTION COST
however sometimes the process raises questions about the answer to which depends on a passive collection of information, but needs to create an abstract figure based on standards, so able to make comparisons between different sections of the company. This is when there is the ratio, based on information already gathered and expressed in numbers without unit of measurement.
Suppose that instead of 8-hour shifts establish 4-hour shifts for workers is less fatiguing. In the first case, the carpenter had 4 chairs, but the second one 2.2. The standards would yield, 0.5 seats per hour in the first case and 0.55 in the second. With this information already generated the accounting department may have to address a report stating that it increased productivity by reducing the length of the day would be (0.55 / 0.50) -1 = 0.1, or what is the same as an increase of 10%.
IMPORTANCE OF COST ACCOUNTING
All large companies we know are struggling to summarize thousands of data on production, to take stock and store, in organize them into standards of very different nature and, finally, to develop useful ratios help decision making on the fly.
The nature of cost accounting, and statistical science is, is essentially incorrect, but effectively representative, as evidenced by the success of large companies over the past 120 years.
0 comments:
Post a Comment