‘Cost is a fact whereas pricing is a policy’. This cost leadership can be achieved out of operational control and cost control efforts. Activity-Based Costing is a technique used by many manufacturing enterprises to cut the cost flab by micro-detailing their activities and laying out plans appropriately. ABC uses the cost activators and cost controllers to enhance cost management in all business forms. In recent times, with the use of ERP systems, cost management is vitalized to provide sufficient information for decision-making. It identifies the activities involved in production, determines the cost per activity, determines the cost drivers, integrates all costs and finally obtains the product costs in finale. The book explains how "ABC captures and reflects the ‘true cost’ of the products" and how Six Sigma can be easily practised along side to target costs without compromising on quality. The firms can price more competitively in the international context. Here, focus is on the values offered to customers and competitors. It is contrasting the theory that ‘producers price and customers buy’. The ABC is done for mass production and batch production where there is limited customization. So, the book will be of great benefit to sectors that practices strategic cost management, Six Sigma and reap gains on cost efficiency. This book will prove useful to financial analysts, finance managers, costing accountants, research scholars, corporates, costing and management practitioners and students of management.
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