Advanced The implementation of budgeting in a world class manufacturing environment may be affected by the impact of (i) a total quality ethos (ii) a just-in-time philosophy and (iii) an activity based focus.

chapter 8 of Kaplan and Cooper (1998). For a description of the application of value-chain analy¬ sis to cost management see Shank and Govindar- ajan (1992).

most of the questions that will be set on cost management topics will be essays and will require students to demonstrate that they have read widely on the various topics covered in this chapter. Questions set are likely to be open-ended and there will be no ideal answer.

Briefly describe the principles incorporated in EACH of (i) to (iii) and discuss ways in which each may result in changes in the way in which budgets are prepared as compared to a traditional incre¬ mental budgeting system. (15 marks)

ACCA Paper 9 Information for Control and Decision Making