ACCT-4100 Study Guide - Midterm Guide: Outsourcing, Overproduction, Batch Production
5 Mar 2018
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Document Summary
It is difficult to promote innovation and empowerment and have the measurements and controls in place to manage risk. Simons" four levers provide a framework for managers to think about what they have in place . and what they need. Study questions: describe each of the four levers and how they work together, diagnostic control systems. It is absolutely necessary to match the appropriate costing system with the production process. For example, when each product is unique per customer specifications, job costing is appropriate where the cost is directly assigned to each job. In mass manufacturing where thousands of the same products are made, then standard costing is the best route to take. Both of these costing methods are considered traditional. Both of these methods support environments geared to maximizing production volume. There is another production environment called lean thinking" where the process begins and ends with the customer. The focus is to reduce waste and increase value.
