Providing valuable insight into the latest practice and design philosophies, this collection of readings and cases analyzes the defects that exist with traditional cost management systems, and shows how to design systems that will benefit a wide range of organizations. Opens with a thorough introduction to cost systems - with discussions on their use, product and process costing, operational control, financial reporting, and strategic relevance - and explores target costing, and ABC and product design and development. Considers the foundations of activity-based costing, including its necessity for companies, cost hierarchy, and activity attributes, and dedicates entire sections to the use of cost systems for managing customer and supplier relationships, and for designing and developing new products. Second Edition features include many new cases and a critical study of service industry and activity-based budgeting. For management consultants, CFO's, and controllers.

1. Cost and Performance Management Systems.

2. Traditional Stage II Cost Systems: Linking Resource Expenses to Cost Centers and Cost Objects.

3. Stage III Cost Systems to Promote Learning and Improvement.

4. Activity-Based Costing: Foundations.

5. Measuring and Managing Capacity Costs.

6. Operational and Strategic ABM: Manufacturing Companies.

7. Using Cost Systems for Managing Customer and Supplier Relationships.

8. Using Cost Systems for Designing and Developing New Products.

9. ABC in Service Companies.

10. Developing Integrated Cost Systems.

11. Using ABC for Budgeting and Transfer Pricing.