Robert S. Kaplan in “One Cost System Isn’t Enough” (Harvard Business Review, January– February 1988, pp. 61– 66) states,
No single system can adequately answer the demands made by diverse functions of cost systems. While companies can use one method to capture all their detailed transactions data, the processing of this information for diverse purposes and audiences demands separate, customized development. Companies that try to satisfy all the needs for cost information with a single system have discovered they can’t perform important managerial functions adequately. Moreover, systems that work well for one company may fail in a different environment. Each company has to design methods that make sense for its particular products and processes.
Of course, an argument for expanding the number of cost systems conflicts with a strongly ingrained financial culture to have only one measurement system for everyone.
Describe the costs and benefits of having a single measurement system.

  • CreatedDecember 15, 2014
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