Page 795 - Accounting Principles (A Business Perspective)

20. Using accounting for quality and cost management

needs. For example, robots perform certain repetitive functions more reliably than humans. Computerized airline
reservations systems also provide better customer service at a lower cost to airlines.
The new production environment is rooted in the new management philosophies that we discuss in this chapter.

For example, managers now use nonfinancial as well as financial measures of quality performance. Many
companies have adopted a just-in-time philosophy for managing purchasing and production. Managerial
accountants are restructuring costing systems to provide activity-based costs resulting in better managerial
decision making. Many observers believe that United States industry has fallen behind foreign competitors because
managers and accountants have not worked together to produce the information management needs to make good
decisions.

796