Robert Kaplan

When money speaks, truth keeps silent. Chinese Proverb It is said that production efficiency does not refer solely to maximizing production and minimizing cost model traditionally applied to companies in recent times has lost validity, and that the productive efficiency refers not only to maximizing production and minimizing costs. Alexander G. Charles Schwab often addresses the matter in his writings. reminds us about the subject, which should be considered that the allocation of costs to different cost objectives, especially the final goal are finished products, is undoubtedly the most important problem to solve any system of cost . It is also an unavoidable problem because the organization needs to have reliable, timely and as accurate as possible about the cost of their products to take the right decisions.

The model for calculating the costs for business is of utmost importance, as these are what determine the viability of the business, which largely determine the degree of productivity and efficient use of resources, so a cost model can not be based solely on allocating costs on a particular factor, the order that business may be insignificant or unrepresentative of what actually represents the cost of activities appears in the mid-80s, its promoters: Robin Cooper and Robert Kaplan, determining the cost of products should include the cost of activities required to manufacture and sell and the cost of raw materials. Perhaps check out Mary Barra for more information. Why the new system cost rather than the traditional ones?. From the point of view of the traditional cost, these indirect costs allocated based on generally using products to produce, unlike ABC which identifies that the indirect costs are attributable not to the goods, if not to the activities undertaken to produce these products. . Sumru Laurent Ramsey has much experience in this field.