Consequences of Inter Firm Chains: (CIMA Research)

Table of Contents:
1 Executive Summary 1 1.1 The management accounting cycle 2 1.2 Cost management 2 1.3 Performance management 3 1.4 Shared destiny and relational contracting - 3 1.5 The role of management accountants 3 2 Supply Chain Management: A review of the Implications for Management Accounting 5 2.1 Introduction 5 2.2 Supply chain management 6 2.2.1 Definition 6 2.2.2 Theoretical approaches 6 2.3 The scope and domain of the literature 7 2.3.1 Lean production 7 2.3.2 Partnerships 8 2.3.3 Supply chain performance and benchmarking 8 2.3.4 Information technology 9 2.4 Cost management, cost control and supply chain management 10 2.4.1 Costing issues 10 2.4.2 Value chain analysis horizontal information systems 12 2.4.3 Target costing and total cost control 13 2.5 Supply chain management and performance measurement 14 2.6 The context of supply chain management 15 2.7 Conclusion 18 3 Research Design and the Structure of the Presentation of our findings 21 3.1 Research methods 21 4 The Case studies 27 4.1 Key aspects 27 4.1.1 The cost management group case (Dextron) 27 4.1.2 The Strategic Alliance case 27 4.1.3 The Morrison Construction case 28 4.2 Detailed case studies 29 4.2.1 Dextron - The Cost Management Group 29 4.2.2 Case Study - Strategic Alliance 36 4.2.3 Case Study - Morrison Construction 39 5 General Findings from the other Companies 43 5.1 Supply chain arrangement of the research companies 44 5.2 Practices of management 45 5.3 Management accounting cycle 45 5.4 Cost management 46 5.4.1 Use of standard costing 46 5.4.2 Target costing 46 5.4.3 Life cycle costing 46 5.4.4 Throughput costing 46 5.4.5 Cost control procedures 47 5.4.6 Activity based management, costing 47 5.4.7 Open book accounting 47 5.4.8 Cost of suppliers 47 5.4.9 Cost of stock holding: Reduction in working capital (Asset Utilisation Effects) 48 5.4.10Cost management for effectiveness or optimisation 48 5.4.11Strategic cost management 48 5.5 Performance management 48 5.6 Organisation changes as a result of supply chain management 49 5.7 Shared destiny and relational contracting 49 5.8 Impact on the role of the Management Accountant 50 6 Review, Evaluation and Recommendations 53 6.1 Introduction 53 6.2 The management accounting cycle 53 6.3 Cost management for efficiency 54 6.4 Cost management for effectiveness 55 6.5 Strategic cost management 56 6.6 Performance management 56 6.7 Shared destiny principle and relational contracting 56 6.8 Organisational changes 57 6.9 The role of management accountants in the supply chain 57 6.10 The Intra-firm examples 57 6.11 Conclusions 58 6.12 Recommendations 61 References 63