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This chapter presents a new approach to teach process costing that uses worksheets to create the information necessary to account for costs. The approach employs a five-column, five-row worksheet that presents weighted-average and FIFO costs per equivalent unit simultaneously. Then, the goal of process costing, accounting for costs, is formally presented in a manner to emphasize its importance. As a result, students are better able to compare and contrast the two process-costing methods.

Costing training activity is one of the most poorly performed business functions. Presents a pragmatic solution to the problem. Beginning with the philosophy that the decision to train is an investment decision like any other, a process focusing on performance factors is followed that takes into account direct and indirect costs, the measurement of alternatives and the estimation of net benefit. Throughout, the unavoidable use of qualitative inputs is documented, so that final results allow management to buy into the costing formula.

This chapter describes a service learning (SL) project implemented in an upper-level undergraduate Cost Accounting course to enhance the coverage of costing concepts. Employing a variation of Lafond, Leauby, and Wentzel (2017) SL task, students actively gather cost data for a business venture by preparing peanut butter and jelly sandwiches which are then donated to a local soup kitchen. Comparison of scores on pre- and post-tests suggests that the SL assignment enhances students’ understanding of key cost accounting concepts. More specifically, improvements in mean post-test scores proved significantly greater in the experimental group after completion of the SL activity than in the control group. Feedback further suggests that students appreciated the opportunity to engage in SL by helping others less fortunate. Active SL tied to course objectives meets The Association to Advance Collegiate Schools of Business (AACSB, 2013) suggestions for honing students’ critical thinking skills, while also helping to instill SL values in future business leaders.

RARELY can organization and methods techniques have received a bigger boost than has come to them through the publicity attending the latest issue of the O & M Bulletin. Some work study people are already aware of this publication; those who are not can easily become acquainted with it by sending a crossed cheque or postal order for twelve shillings to the editor. This covers a year's subscription and HM Stationery Office, in whose favour the remittance should be crossed, will attend to renewals.

The determination of quality costs on a production line is discussed. An approach to quality costs analysis is developed and illustrated employing a particular production line. This line which is devoted to the assembly and testing of an advanced computer system is fully described. A diagrammatic model of the production line is presented which displays points on the line at which quality costs can arise and the nature of these costs. A quality cost model for this line incorporating prevention, appraisal and failure cost elements is presented and their estimation discussed. It is argued that the modelling concept developed can provide a general framework for the isolation of quality costs.

The purpose of this paper is to understand the factors relating to the implementation of a new procurement initiative that affect performance and value for money (VFM). The study is based on a four-year research project carried out on behalf of the Scottish Government to monitor and evaluate the performance and efficiency of a bulk procurement vehicle for social housing.

The researchers had a brief to monitor and evaluate the implementation of the procurement process and its influence on cost and efficiency targets. The study employed a mixed method approach with annual rounds of qualitative and quantitative data collection from project stakeholders including the contractors, consultants, clients and sponsor. Confidential semi-structured interviews were conducted on conclusion of the project to gauge views on how well the procurement process worked from the various perspectives and to reflect on the influence of the process on VFM.

The procurement programme failed to achieve the capital cost and efficiency savings targets quantified at the outset and on this measure alone VFM was not demonstrated, although there were a number of reported benefits. A major factor was the extent of process and behavioural change required from the project team and, although a procurement consultant was engaged to facilitate this, the theoretical benefits of “best practice” were not realized. The picture was further complicated by rapidly changing economic conditions experienced, and debate about the robustness of original cost savings targets.

The findings and conclusions are of relevance and interest to clients and construction organisations undergoing change through adopting novel procurement processes.

The empirical nature of the study provides a comprehensive evidence base for the performance of a collaborative procurement programme and an understanding of the potential difficulties in attaining the theoretical benefits of procurement innovation.

The purpose of this paper is to reengineer the process of cost management in large projects.

Considering the fact most large projects overrun their budgets because of the long time period needed to completion, it was decided to reengineer the cost management. Accordingly costs allocated to packages were reviewed and changed on a dynamic basis. Different types of contingencies were provided. Concepts of package contingency and project contingency were introduced. These were based on the project buffer and feeding buffer concepts popularised by Eliyahu Goldratt.

The re-engineered method of cost control worked well and yielded better than expected results, leading to the setting up of a new world record in the completion time for setting up a million tonnes per annum continuous, tandem cold rolling mill to roll steel sheets.

In view of the total success of the reengineered approach, which was tested out on a large project over three years, it is felt that other projects could also try out this technique, especially since it is along the lines proposed by Eliyahu Goldratt who is an authority on project management. However the success can be better understood if the results of the testing become available. To that extent the contents of the present paper have limitations.

Large projects can deploy the methodology and complete their projects on time and under budget.

The reengineering of the cost management was done primarily with a view to complete projects under budget. Since many governments spend many billions of dollars on publicly funded projects for the welfare of citizens, the use of this technique could have a salutary effect on the cost.

The method was innovated in the company by the author’s team and deployed in a live project over four years for the first time to achieve world-class results.

HAS BRITAIN really lost its sense of purpose? Has it no noticeable industrial policy?

In calculations of inventory control costs, the effects of stockouts are often assumed or avoided because of the lack of accounting data for reasonable measurements. The authors describe the development of stockout cost models incorporating decisions made by consumers in an actual retail situation. Equations for calculating the revenue differences are based on the consumer decision alternatives. The results of a consumer survey, combined with retail prices for the product lines in question, enable the financial effects of stockouts to be calculated.

Reviews the growth in importance of planned maintenance programming (PMP). Sets out the aims of computerising PMP at strategic and detailed levels. Provides a detailed analysis of successful systems characteristics. Lists considerations to be borne in mind and questions to ask before purchasing a system. Concludes that although the potential benefits of computerised PMP are great, careful consideration of the objectives and options is vital.