Explicit Cost Dynamics: An Alternative to Activity-Based Costing.Explicit Cost Explicit Cost A cost that is represented by lost opportunity in actual cash payments. Notes: These are tangible costs which can be easily accounted for. For example: wages, rent and materials. See also: Implicit Cost, Opportunity Cost Dynamics: An Alternative to Activity-Based Costing In a business organization, Activity-based costing (ABC) is a method of allocating costs to products and services. It is generally used as a tool for planning and control. This is a necessary tool for doing value chain analysis. . By Reginald Tomas Yu-Lee. John Wiley John Wiley may refer to:
Most high-ranking financial officers are familiar with the concept of activity-based costing, which has gained wide popularity in recent years. But like most financial management techniques, it's been the target of skepticism -- and efforts to develop something better. That's where explicit cost dynamics (ECD ECD Early Childhood Development ECD Electron Capture Detector ECD Energy Citations Database ECD Executive Creative Director (advertising) ECD Ethyl Cysteinate Dimer ECD Electron Capture Dissociation ECD Electronic Civil Disobedience ) comes in. Author Yu-Lee, a Ph.D and consultant in costing and information systems, offers this methodology as a way of maximizing profits. Traditional cost management systems often fall short by institutionalizing practices that don't optimize performance, he argues. ECD, on the other hand, creates a system "that cannot be manipulated to make performance numbers appear better, is well-suited to 'what-if' analysis and is far simpler than allocation-based models." This is a serious volume, with a plethora of charts and tables, as well as mathematical equations. The writing style brings to mind a lot of high school textbooks, but at least it doesn't overreach overreach the error in a fast gait when the toe of a hindhoof of a horse strikes and injures the back of the pastern of the leg on the same side. overreach boot and muddy what is already a complex subject. |
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