Replies

In first week learned about the how the managerial accounting plays important role in business environment. The accounting is two types like managerial accounting and other is the financial accounting. Learned about the two types of accountings and observed the key differences. In second week learned about the cost management concepts. I hope this cost management concept will help in future job roles. In this week research and analysis about the different accounting certification courses. This helpful for future in complete of required accounting certifications. In week 3 learned about the costing is activity-based costing. Estimate the cost of the work based on the number of jobs and activities done in development of projects. Next week's learned about the different cost behaviors like fixed costs, variable costs and mixed costs. The companies follow the different cost behaviors based on the nature of the company business.

In the last 6 weeks I am interested in topics that are activity based costing and different cost behaviors analysis. I thought this learning knowledge would be useful for my career growth in accountings department. In activity-based costing identify the number of activities and estimate the cost for all total activities done in product or project development (Blakely-gray, 2018).

 

In real life also many situations and many small businesses this activity-based cost method is the good method for calculation of costs. The cost behavior analysis is also important for companies in cost estimation. The costs are two types like fixed costs and other is variable cost. If any changes in costs that do not change the production level directly is the fixed costs. In variable costs if any changes in costs or resources that will impact on production (Nickolas, 2020). Learning these cost behaviors and cost management are useful for my career growth.

 

References

Blakely-gray R. (2018, August 21). Activity-Based Costing for Small Business. Patriot. Retrieved from https://www.patriotsoftware.com/blog/accounting/activity-based-costing-small-business/.

 

Nickolas S. (2020, July, 12). Variable Cost vs. Fixed Cost: What's the Difference?. Investopedia. Retrieved from https://www.investopedia.com/ask/answers/032515/what-difference-between-variable-cost-and-fixed-cost-economics.asp.

In the past couple of weeks, this class has introduced me to a new world, with different perspectives to corporate accounting. I have learned about the significance of managerial accounting, the different types of costs and costing methodologies employed by manufacturers and service providers and the advantages of using activity based costing over traditional costing methods. 

 

What resonated most with me, however, are the types of cost drivers and the impact that these drivers can have on a company’s production. Activity Based Costing (ABC) is highly reliant on dividing the organization’s cost objects into cost pools and determining the measures or drivers of revenue generation within these cost pools. In order to better manage costs of company activities, it is critical to understand the nature of the factors influencing these costs. 

Since I work as a techno-functional consultant, I strive to make empirically backed decisions and the determination of which drivers impact the company’s productivity can be proven definitively using statistical measures. Using data analysis, I could first analyze which cost drivers are most significant for their corresponding activities and subsequently using machine learning techniques, even the most subtle variations in these drivers can be predicted and modeled, as so to determine the impact it can have on its corresponding activity. This would be immensely useful in creating better reports to senior management.

Furthermore, by exploring the segregation of cost drivers into structural, organizational and activity based, I can continue to expand my horizons on what really determines cost fluctuations and move a step closer to becoming a subject matter expert on that topic.

References:

Hilton, R. W., & Platt, D. E. (2020). Managerial accounting creating value in a dynamic business environment. New York, NY: McGraw-Hill.

 

 Garcia, M. (2018, April 23). Cost Accounting Practices in the Service Industry. AZ Central. Retrieved from https://yourbusiness.azcentral.com/cost-accounting-practices-service-industry-26920.html

Idea Generation and New product development:

New products are important contributors to a firm's growth, prosperity, profitability, and indeed, to their ability to compete in the market place (Alam & Ali, 1998). Other reasons for product development may include are lift up their corporate image, effects made to satisfy the existing customers in better or attracting the new customers, etc. The new product development process includes the stages of Idea generation, Idea screening, Project planning, Product development, Test marketing, and Commercialization. Even though every stage has its importance now I would like to discuss the importance of Idea generation in new product development.

Idea generation is an important and critical phase of the primary role in the new product development process. Without good ideas, one is unlikely to come up with successful new products (Alam & Ali, 1998).  It is a phase of picking the right idea (among all available) and going through further steps by investing money. Choosing the wrong idea and continuing through further steps may result in bringing bankruptcy for the company. Ideas can come from observing social (or cultural or economic) trends, from listening to customers, your sales force, or your front-line service workers (Iacobucci, 2008, P. 93).

I would like to refer to idea generation as the most important stage in the whole process of new product development. I believe it a basic footprint for the whole process of getting profits. Among all available techniques, I believe the customer's necessity is the fuel for the generation of new ideas. My strategy towards new product development is maintaining the right proportions of both technical pushes along with the marketing push. I also would encourage the employees to share their thoughts on “ideas generation day” which is conducted twice in years. Encouraging them with rewards will result in more ideas from which we can filter the best idea. I would like to choose mobile as a product that I use in my personal life (Samsung mobile) to explain the necessity of idea generation and new product development. I believe that every mobile company should upgrade their mobile every year according to the customer's requirements by maintaining the correct proportion of both technological and marketing push.

References:

Alam, I., & Ali, A. (1998). New industrial product idea generation. In American Marketing Association. Conference Proceedings (Vol. 9, p. 187). American Marketing Association.

Iacobucci, D. (2008). Marketing Management. Ohio: Cengage Learning.

“Idea generation is critical to the design and marketing of new products, to marketing strategy, and to the creation of effective advertising copy” (Touba, 2006). Idea generation is known as coming up with the perfect idea of using communication, development, and creativity skills. “The best-known idea-generation methods have evolved from “brainstorming, “developed by Osborn in the 1950s” (Touba, 2006). Several agencies use brainstorming in meetings to get information from different staff members and use diverse viewpoints to come up with the ideal solution or idea in this case. Idea generating can really help in the product development process because this includes needing to identify a strategic plan and incorporating the ideas into this new plan. As we all know, when a new product is developed, there are several ideas that need to be narrowed down but also well recognized. It is stated that “The idea generation is an iterative process that all business organizations require to figure out solutions to a number of arduous challenges.” (Combustion, 2018). A good example of idea generation could be around the packaging of a product. For example, I am a huge fan of chocolate but if I am trying something new I judge the chocolate by the cover and packaging style. Therefore, I am sure there are several individuals that work hard and brainstorm to come up with a packaging style that is not only appealing to one group but the market in general.  I think idea general is highly important in this field especially around the product development process because this allows for improvements, creative skills coming out, and more to please the target customer.

References

Combustion. (2018). What are the steps for idea generation in new product development? Retrieved from The combustion group: https://combustion.com/what-are-the-steps-for-idea-generation-in-new-product-development/

Touba, O. (2006). Idea Generation Creativity and Incentives. Marketing Sciences, 411-425.