Instructions: Cost Management and Cost Systems response 1 DB 730
Develop a response to the post below highlighted in yellow. Peer responses must include meaningful and substantive contributions to the discussion, and ideally provoke and challenge the thinking of your colleagues. The reply must be no less than 250 words.
The response should NOT be a critique of the student’s post, nor should you acknowledge if they responded to the question. The purpose is to add value to the post in an effort to continue the conversation;
The response must demonstrate a substantive discussion;
Each reply must be supported by citing at least 2 peer-reviewed journal articles;
Narrative prose only please – no bullet points, numbered lists, or tables.
Must use 7th Edition APA
In addition to the 2 peer-reviewed articles, include the following:
Blocher, E., Stout, D., Juras, P., & Smith, S. (2019). Cost Management: A Strategic Emphasis (8th ed.). Boston, MA: Richard D. Irwin, Inc. ISBN: 9781260165180.
Keller, T., & Alsdorf, K. L. (2012). Every Good Endeavor: Connecting Your Work to God’s Work. New York, NY: E.P. Dutton. ISBN: 9780525952701.
From the chapters attached (1-5), and 6 in the Blocher Text “Cost Management: A Strategic Emphasis”, select 2 techniques/concepts of interest.
Submit a discussion post of a minimum of 550 words examining the relationship between the selected techniques/concepts and strategic allocation of financial resources. Then use the Bible, Keller text, and other sources to provide biblical application of the concepts.
Support your thread by citing at least 3 peer-reviewed journal articles. The assignment submission must be in current APA (7th edition) format and must include a reference list.
PEER RESPONSE (GF):
Cost Management and Cost Systems
According to Blocher et al. (2019), there are several techniques and concepts that organizations use to effectively manage the costs of doing business and maintaining the ability to grow. This report will focus on total quality management and sustainability along with the methods used by the decision-makers to determine how their company’s financial resources are strategically allocated. Organizational ethics will also be explored.
Total Quality Management
Total Quality Management (TQM) is a long-term approach that focuses on customer satisfaction throughout the entire business process. In fact, the goal is to exceed customer expectations at all times. This includes factors such as the design, functionality, durability, and cost (Blocher et al., 2019, p. 15). According to Abbas (2020), TQM is heavily influenced by KM (Knowledge Management) and how they collectively have a significant impact on CS (Corporate Sustainability). The three are dependent upon each other to project an organization to the forefront of their industry and to help them remain competitive within (Abbas, 2020).
Organizations consistently evaluate their policies and procedures along with their impact on their cost analysis process. TQM practitioners thoroughly examine every aspect of a product or service that they provide and strive to improve the quality from the viewpoint of their customers. Special attention is given to the different levels of expenses/costs that are associated with engineering, manufacturing, marketing, servicing, rebating, and recalling a product. Complaints and areas of concern are important factors as well (Blocher et al., 2019, p. 15).
Sustainability has had major implications over the last few decades as citizens, governments, and organizations around the world have become more aware of the impact humans are having on the environment along with the health and safety of the employees (Blocher et al., 2019, p. 51). One measure of the financial impact is evidenced by the Dow Jones Sustainability Index. The entire world can see what companies are making an effort to conduct business the right way and those that are not. Companies that practice sustainability properly have been rewarded financially as their profitability increases (Blocher et al., 2019, p. 51).
According to Macpherson and Lockhart (2017), sustainability can be achieved through one major resource, humans. For example, Toyota established a culture of sustainability by building plants where people currently lived or desired to live (Macpherson & Lockhart, 2017). “Michael Porter’s framework states that a firm can compete effectively as a cost leader or through differentiation” (Blocher et al., 2019, p. 207). Cheap labor can provide significant cost savings and seasoned labor can provide differentiation. Toyota believes they have achieved a high level of sustainability by solidifying both of Porter’s claims (Macpherson & Lockhart, 2017). Organizations that are proactive in their environmental, social, and governance efforts are rewarded through consumers purchasing their products and/or services along with the investment community (Weston & Nnadi, 2020).
Ethics and Honesty
Ethics and honesty are important to organizations and families. Truth is appreciated, but not always embraced.Certain industries have higher levels of dishonesty and ethical discretions within, including management. For example, the financial services industry is considered to view the profitability of the company comes first, then the clients. The clients’ best interest often is not a concern nor a priority (Thomas et al., 2018). Houdek (2017), concludes with a warning that unrealistic expectations may damage the credibility of behavioral ethics. People may believe that expectations can be set too high. Organizations and employees within have to balance the level of selfishness and greed to ensure that they do not compromise the goal which is to make everyone’s lives better (Keller & Alsdorf, 2016, p. 205).
Organizations are expected to follow certain laws and regulations when it comes to their accounting processes, reporting, and disclosing. They are expected to be competent, credible, and done with the utmost integrity (Blocher et al., 2017). The competency of the accounting professionals is paramount as they present valuable information that major decisions are made. Through our work, our competence and commitment can benefit the communities we serve (Keller & Alsdorf, 2016, p. 67).
Abbas, J. (2020). Impact of total quality management on corporate sustainability through the mediating effect of knowledge management, Journal of Cleaner Production, Volume 244, ISSN 0959-6526, (www.sciencedirect.com/science/article/pii/S0959652619336765) Blocher, E.J., Stout, D.E., Juras, P.E., & Smith, S. (2019). Cost Management. A Strategic Emphasis. 8th Edition. McGraw-Hill Education Houdek, P. (2017, June 13). Is Behavioral Ethics Ready for Giving Business and Policy Advice? Journal of Management Inquiry. https://journals-sagepub-com.ezproxy.liberty.edu/home/jmi Keller, T. & Alsdorf, K.L. (2016). Every Good Endeavor. Connecting Your Work to God’s Work. Penguin Books.
Macpherson, W.G. and Lockhart, J.C. (2017). “Understanding the erosion of US competitiveness: Managededucation and labor in Japanese “corporate castle towns”, Journal of Management History, Vol. 23 No. 3, pp. 315-336. https://doi-org.ezproxy.liberty.edu/10.1108/JMH-03-2017-0012
Thomas L. T., Sutarso, T., Ansari, M. A., Lim, V. K. G., Teo, T. S. H., Arias-Galicia, F., Garber, I. E., Chiu, R. K., Charles Pauvers, B., Luna-Arocas, R., Vlerick, P., Akande, A., Allen, M. W., Al-Zubaidi, A., Borg, M. G., Cheng, B.,Correia, R., Du, L., Consuelo Garcia de, l. T., . . . Adewuyi, M. F. (2018). Monetary Intelligence and Behavioral Economics: The Enron Effect—Love of Money, Corporate Ethical Values, CorruptionPerceptions Index (CPI), and Dishonesty Across 31 Geopolitical Entities: JBE. Journal of Business Ethics,148(4), 919-937. http://dx.doi.org.ezproxy.liberty.edu/10.1007/s10551-015-2942-4 Weston, P., & Nnadi, M. (2021). Evaluation of strategic and financial variables of corporate sustainability and ESG policies on corporate financial performance, Journal of Sustainable Finance & Investment. https://www-tandfonline-com.ezproxy.liberty.edu/doi/full/10.1080/20430795.2021.1883984
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