My journal 'Achieving Full-cycle cost management contains information about the cost of a product being predicted during the design stage of the product rather than the manufacturing stage. It investigates how cost reduction is tried at the designing stage and cost containment during the manufacturing stage, however they carry out studies to investigate where is best to look at the costs of the product. The aim of the article is to show companies that costs should be looked at, at all stages rather than just one stage.

Findings

Research is carried out at Olympus Optical which is explained why in the article. They carry out tests that look at 5 different techniques into the cost management theory, these are Target costing, Product-specific Kaizen Costing , General Kaizen Costing , Functional group management and Product Costing. The study shows that using these techniques the first 4 have an objective of cost reduction where product costing has the objective of cost containment. They have an integrated cost management program which works for their product and shows the product having the most efficient costs.

Critic Review

The journal met the objectives of the study, it was set out in a mature way in which the research findings were easily shown and the way the study was researched was easy to follow. The technique used to test the cost management theory was appropriate regarding accounting as it looked at products from one company and how the company adapted their cost management theory to more than one product. It looked at all possibilities regarding costing using techniques linked to the life cycle process and target costing. The research paper I found was dated in 2004, so the research was made over 10

years ago, however from the content of the paper and the intensity of the study, the information acquired is still accurate when looking into cost management.

2.

A Model of Product Life Cycle Cost Management Based on the Example of the Spartan Multimedia Shooting Training System (Waldemar Swiderski and Wieslawa Rolex, 2021)

Overview

The research paper evaluates the product life cycle costing of SPARTAN. SPARTAN being a "stationary training system designed to train, monitor and evaluate sighting and shooting techniques for small arms"

It looks at how implementing the cost management accounting system of product life cycle costing; measuring the productions costs from the initial investments, ownership and operation costs and can include the final decommissioning costs, however during the production of SPARTAN this was not calculated. The aim of the research was to discover which project would be more profitable at the end of the whole life cycle cost, using analysis from the calculations of life cycle costing.

Tests and Finding of the Research

Using NPV and a IRR of 2% and LCC formulas the company could determine which of the SPARTANs out of the basic or modernization would be more profitable.

Whilst calculating the NPV of the basic production of SPARTAN it was determined that using 100, 1000s training soldiers while the system is over 20 - 30 years was more profitable than 1 - 10 training soldiers over the same period of time.

The LCC was calculated using the following: LCC = Ko + Kp + Kop/(1+r)n

Acquisition Costs - Ko

Ownership Costs - Kp

Operating Costs - KOp

Covering analysis over 10 years (n) and a discount rate of 2%

The findings of the analysis between the basic and after modernization was that even after a higher acquisition cost for the modernization this SPARTAN was more profitable, mainly down to the reduced maintenance costs.

Critical Assessment

The journal was produced with the intention to review the product life cycle costing and target cost methods as cost management for the SPARTON training system. The SPARTON training system is an elite training system for soldiers who will train with small arm weapons. The journal was produced in this current year, making the findings up to date.

The research looked at the costings for both systems, a basic training system and the modernisation version. Product life cycle costing is becoming an important cost management tool for the defence/arms industry.

Life Cycle Costing is used by the US Department of Defence and Defence industries across the globe. In using this cost accounting technique, the costs were analysed before production using the full life costs for the product. The research found that the modernised version of the SPARTON was more

profitable, using key costings they could determine which areas were costing the company more, the research found that the basic version would require more maintenance over its lifespan, costing the company 9,727. However, this still highlighted the profitability would take 100 soldiers over a service life of 30 years for the model to be profitable calculating the NPV at 2% discount rate.

The research has highlighted that investing more into the modern version of the SPARTAN has a better life cycle costing result due to the potential less costs during its lifespan.

3. Overview

The article here provides for the purpose of considering marketing costs as important as manufacturing costs, this article aims to discuss the above objective with details and demonstrates how and why marketing costs shall not be secondary and equally important while making assessments in managerial accounting or cost management.

The article here aims to provide the details of the marketing costs and how it is equally important. The article aims to:

Thorough and wide analysis of components of marketing costs.

Relevance of marketing cost in the entire cost structure.

Point of view of cost leaders regarding marketing costs.

Tests and Findings

The test demonstrates the contribution of marketing cost component in cost management. This achieves proof as most of cost leaders agree with the same theory of approaching marketing cost and its segments as they hold experience and consider the marketing cost as great importance. The research clearly provides, importance of marketing costs not only being related to the revenues but also to profits. Various leaders research explains how marketing costs can be separated into various components; how cost methods can be applied. It explains activity-based costing. The details provide how marketing cost exceeds the contribution in making revenue more than the manufacturing costs.

Critical Assessment

This explains how marketing costs can make difference in the success of any. This is important to understand, the test establish clear information off how the marketing costs shall not be neglected upon any grounds and is equally important as much as the manufacturing costs. These days market reputation plays an essential role in the success of the company. The research has aimed to discuss the various aspects of marketing costs and how it impacts the cost management. This is a clear representation of how costs in this nature can impact each costing method and how it does make a difference in approach and how vital it is to include it in detailed planning and its contribution in achieving revenues and profits.

The tests done through various means clearly establishes the importance and demonstrate that the marketing expense shall be considered as vital asset of the company financials. The various components of marketing costs can be separated in various means in order to clearly provides detailed examination of how it shall be accounted for in the financial statements. This explains all the aims and establishes various heads of leading organizations and how it will include the planning of cost management.

4. COST MANAGEMENT

For a successful project there must be a constant and effective communication for effective decision process to be taken. Cost management is a process project with a different phase of outcomes that needs series of routine checks in other to yield organisation objectives. For an organisation to be successful in improving cost, there must be an understanding and involvement of every department in the entire firm and providing information necessary for decision making process. Management therefore needs to effective and efficient in everyday cost management information being received for a very clear path decision making, having customer value in mind.

Having chosen the accountant to be the leading role in managing cost in the business, there can be electronic version as well. The use of computer software to monitor and measure performance of cost in the business will save a lot of time and money. Daily, weekly, monthly, and annually checks and monitored by the accountant will not make the business effective and efficient. This electronic version will be a software that will be installed into the computers and will trigger any cost that is going above the budgeted. The daily, weekly, monthly, and yearly routine checks will be done.

A great deal to have learnt about cost management, great insight of understanding how the entire organisation working in one accord to minimising cost. Consistently and daily checking and measuring performance against planned and future cost shows how processing cost management is. As it is a process and learning activity, experience is acquired from previous achievement to improve upon subsequent projects, thereby reducing unprofitable activities and improve more on profit activities. Because also is an organisation work, it improves every worker to learn and know how to manage and improve costs, which leads to employee improvement.

As managing cost in an organisation is challenging and worth fighting for, it will be more profitable and beneficial for businesses embarking on topic like this must try and try to find a better solution to improve cost. Having both electronic and manual version in place at work will always the business achieve it optimal achievement. Organisations such as HMRC have this two-way system in operation for effective monitoring and managing taxpayers cash flows.

here a 4 different views on the article the question is:

A. A comparison journal which evaluates their respective contributions to the subject which is cost management.

B. Discussions of any issues arising that would benefit from further research.