Term paper on ACTIVITY-BASED COSTING

Total customer satisfaction

Total Customer satisfaction is one more business strategy which has the major goal – to ensure that “the overall customers’ opinion concerning this or that product or this or that service is rather good. It means that the customers are satisfied with the quality of product or service. It is very important in case when there is a competition in the market and the competitors represent identical goods or services for the same prices. (Smith, 2007, p.3)

Total customer satisfaction is one of the areas which is very important for any organization that wants to be competitive in the market.

Computer-integrated manufacturing

Computer-integrated manufacturing is a special manufacturing approach which plays an important role in the production process. It stands for the complete automation of the process of manufacturing of this or that product. It gives an opportunity to be competitive in the market and to raise production. Moreover, it guarantees high quality of products.

It is known that computer-integrated manufacturing includes such functional areas as design and analysis, planning and purchasing. It also includes cost accounting and inventory control. (Rehg &Kraebber, 2006, p.7)

CONCLUSION

In conclusion, it is necessary to say that activity-based management is really a rather effective approach to the management of activities related to the business processes. It helps to improve the value which is got by customers and the profit which is earned as the result of the value. In ABM, the major causes of activities are identified and evaluated in order to be effectively used with other appropriate activity information. Of course, the major goal is to reduce non-value adding activities. One of the major sources of information is activity-based costing data. Such strategies and techniques as management of the value chain, total quality management, just-in-time inventory management, total customer satisfaction, and computer integrated manufacturing are very important for any organization that has the major goal – to remain competitive in the twenty-first century market. Of course, all these concepts are affected by the use of activity-based management.