I. TITLE
"THE MODEL OF COST ACCOUNTING AND ITS CONTRIBUTION IN THE VALUE CHAIN OF COMPETITIVE COMPANIES".
II. GRADUATING NAME
III. PLACE WHERE THE THESIS WILL BE DEVELOPED
This research work will be carried out in the Industrial Sector of Metropolitan Lima, with application in the company "Envases Plásticos KARLA SAC".
IV. PROJECT DESCRIPTION
4.1.1. BIBLIOGRAPHIC BACKGROUND
For SCHNEIDER, cost is "the monetary equivalent of the goods applied or consumed in the production process." The opportunity cost of any factor used in the production process is measured according to the lost profit for not using that factor in its best alternative application. For those productive factors contracted abroad, the opportunity cost is given by the current market value that they could have. For the company-owned resources that are consumed, the opportunity cost is given by the current market value that they could have.
Management accounting applies an inductive methodology for calculating and controlling costs, which results in cost being shown as a relative value magnitude as there is uncertainty in the valuation of consumption and in the distribution of these over the production obtained. The cost arises when the consumption of the factors is carried out to carry out the economic transformation of the value chain. The expense is the monetary equivalent of the purchases made, referring to the time of acquisition. There are non-storable expenses in which its acquisition coincides with consumption, that is, the expense with the cost.
As management accounting aims to prepare information for decision-making, it must provide different types or variations of cost information that adapt to the needs of the changing situations in which it must be decided, and it is necessary to attend to the different problems raised in the following aspects:
- Measurement of income - costs - benefits.
- Information for planning.
- Information for control.
- Information for decision making.
- Information on the different activities that make up the value chain and on cost drivers that reflect the casual relationship of consumption
CYCLES OF COST ACCOUNTING AND RECORDS.
A unit of costs refers to the units of production or sale expressed as a measure according to the characteristics of the manufacturing and marketing processes. It is a measurement base that identifies quantities in physical terms. It generally coincides with that used in commercial transactions. Manufacturing cost statement.
For its determination, a manufacturing cost statement is prepared, which summarizes the consumption of materials, labor and indirect costs and determines:
* Period costs. * Costs of finished products. * Costs of the products sold.
In the cost statements the formula is used:
Cost of sales = initial stock + purchases - final stock AND is used to determine both the consumption of materials and the costs of production sold and completed. In general, control accounts are worked for each element of the production in process. Cost flows and production cost accounts.
The flow of production costs follows the physical movement of raw materials as they are received, stored, spent, and converted into finished goods. In a broad sense, the production cycle can be divided into three main phases:
1. Storage of raw materials. 2. Manufacturing process of raw materials in finished articles. 3. Storage of finished items, although in many companies the control of finished items is under the jurisdiction of the sales department, and therefore should not technically be considered as part of the production cycle.
Three general types of inventory accounts are used in cost accounting: raw materials, work in process, and finished items. Charges to the work-in-process account consist of the three elements of manufacturing costs: raw materials used, direct labor, and manufacturing overhead. The costs of the raw materials used and the hand
Direct labor, which normally occurs, is charged directly to the Work in Process account.
However, manufacturing overhead costs are first accumulated in a general ledger account titled Manufacturing Overhead Cost and then transferred or applied to the Work in Process account.
THE VALUE CHAIN
In an environment where it is increasingly difficult to compete, efficiency in the value chain works for us as a driver to reduce costs and make resources more efficient, however, its main objective is to establish logistical, operational and strategic schemes that break with traditional ones, in order to establish strong competitive advantages in the medium and long term.
The value chain concept focuses on identifying the processes and operations that add value to the business, from the creation of the demand until it is delivered as a final product.
This is made up of two subsystems: the demand chain, which refers to all the processes related to the creation and understanding of demand; and the supply chain, which refers to aligning all business processes towards meeting the demand requirements in time, quantity and form; that is, achieving excellence in logistics execution, obtaining high levels of service at the lowest cost.
However, the value chain not only implies greater efficiencies and lower costs, but a radical change in the way we operate, in order to establish advantages.
The existence of the following bibliographic information has been determined:
Carrión's thesis STANDARD COSTS - ABC FOR THE PLASTICS INDUSTRY, shows the "Cost Techniques" as useful tools for business decision making. Providing conceptual aspects of costs, presenting the company in a general way taking into account the market, product, organization and technology, describing the existing costing system, briefly detailing the cost elements and showing the cost contributions to the current system, describing the guidelines of a standard cost system oriented for control and planning and then developing the Activity costing system to improve the currently intuitive “Decision Making”.
4.2. PROBLEM STATEMENT
4.2.1 FORMULATION OF THE PROBLEM
Nowadays, it is a problem for companies to reach minimum and competitive cost levels in the manufacture of products, with the corresponding required quality and an adequate level of consumption of human, material and financial resources in correspondence with the development and existing technologies.
That is why companies must keep in mind the value chain in production, which is an innovative instrument whose adoption should be of interest to developing countries. It tries to examine, at the sectoral level, each link in the 'activity chain', from the moment the product or service is only an idea until its elimination after its use. The value chain of any product or service ranges from research and development, from raw material supply, production and delivery to international buyers, through to disposal and recycling. By charting the entire process, planners better determine at which stage of the national component of the global chain they can capture the most value.
For this reason, the Value Chain seeks the strategic collaboration of companies with the purpose of satisfying specific market objectives in the long term, and achieving mutual benefits for all the "links" of the chain.
4.2.1. SYSTEMATIZATION OF THE PROBLEM
MAIN PROBLEM:
How can the cost accounting model contribute to the value chain of competitive companies?
SECONDARY PROBLEMS:
- How can the procedures established in the value chain facilitate companies to develop a competitive strategy?
- How to implement cost accounting policies, so that it is carried out properly and contributes to the effectiveness of company management?
4.3. THEORETICAL AND CONCEPTUAL FRAMEWORK
4.3.1. THEORETICAL FRAMEWORK
CONCEPTS
DEFINITION OF COSTS
Sealtill Alatriste: The costs are generated within the private company and is considered as a producing unit.
The term cost offers multiple meanings and to date there is no definition that covers all its aspects. Its economic category is linked to the theory of value, "Cost Value" and to the theory of prices, "Cost price".
The term "cost" has the basic meanings:
1- The sum of efforts and resources that have been invested to produce a thing.
2- What is sacrificed or displaced in the place of the chosen thing.
The first concept expresses the technical factors of production and is called the investment cost, and the second expresses the possible economic consequences and is known as the replacement cost.
Cost Denominations.
The term cost has several meanings, however here we will take as a base the one that defines it from an economic point of view in a more general way and to which the cost accounting technique is limited. This definition of the term cost defines it as the set of efforts and resources that are invested to obtain a good, that is, it refers to the Investment Cost.
By saying efforts, we want to indicate man's intervention, that is, his work; and when saying resources, the necessary investments are indicated that combined with the intervention of man and in a certain time, make possible the production of something.
These costs to which we have previously referred, in economic science are called Investment Costs, the same ones that when measured in currency values, also take the name of Monetary Costs.
Therefore, the investment costs, due to their component elements, efforts and resources, translated into the accounting language and specifically referring to Production Costs, are found in the following elements: materials, labor and production expenses.
COST
It is the value of what comes out, measured in monetary terms, potentially on the way to being incurred, to achieve a specific objective.
Thus, if we acquire raw materials, pay labor, repair machinery in order to manufacture, sell or provide any service, the amounts spent are called costs.
CONCEPT OF COST ACCOUNTING
For Cecil Gillespie Cost accounting consists of a series of procedures aimed at determining the cost of a product and the different activities required for its manufacture and sale, as well as planning and measuring the execution of work.
GARCÍA COLÍN, Cost accounting "It is the monetary value of the resources that are delivered or promise to deliver, in exchange for goods or services that are purchased."
DEL RIO GONZALEZ, "They are the sum of efforts and resources that have been invested to produce something."
ORTEGA PÉREZ DE LEÓN "It is the set of payments, obligations contracted, consumption, depreciation, amortization and applications attributable to a given period, related to the functions of production, distribution, administration and financing."
Classification of costs
The costs, in terms of the time they obtain, are divided into:
Historical costs: are those that are obtained after the product has been manufactured, that is, they are costs that have been incurred and whose amount is known.
Predetermined costs: those that are calculated before carrying out production on the basis of specified future conditions and these refer to the number of items to be produced, the prices that management expects to pay for materials, labor, the expenses and quantities to be used in the production of the articles.
There are two types of predetermined costs and the most notable difference between them is the way of calculating them:
a) estimated costs: it is the amount, which according to the company, will actually cost a product or the operation of a process over a period of time.
This is calculated based on the best information available; it is characterized by a somewhat general and shallow predetermination of the most recent costs.
b) standard costs: these are the predetermined costs of manufacturing a single unit or a period of time, based on certain assumed conditions of economic efficiency and others. It requires complete scientific standards, systematic analyzes of production, that is, studies made by engineers on current production capacity or on what is expected in the future.
Cost Characteristic:
The costs must meet 4 fundamental characteristics:
- truthfulness: costs must be objective and reliable and with a correct determination technique. Comparability: isolated costs are few comparable and are only used in inventory valuation and to set prices. To set the prices, to be sure that the costs are standard, we compare the old cost with the new cost. Usefulness: the cost system has to be planned in such a way that without missing accounting principles, it benefits the management and the supervision, before those responsible for the administrative departments. Clarity:the cost accountant must keep in mind that he not only works for himself, but also for other officials who do not have a broad knowledge of costs. So they have to make an effort to present figures clearly and comprehensively.
COSTING SYSTEMS
We have the following types of costing:
S ystems by specific orders are those where the costs of production according to customer specifications accumulate. So the costs demanded by each work order are accumulated for each job.
Systems by process are those where production costs accumulate in the different phases of the production process, over a period of time. In each phase, a production cost report must be prepared, in which all costs incurred during a period of time are reported; production costs will be transferred from one phase to another, together with the physical units of the product and the total cost of production is found at the end of the production process - last phase -, by sequential cumulative effect.
Historical costing systems are those that accumulate real production costs, that is, past or incurred costs; This can be done in each of the work orders or in each of the phases of the production process.
Predetermined costing systems are those that work from costs calculated prior to the manufacturing process, to be compared with actual costs in order to verify if what has been incorporated into production has been used efficiently for a certain level
production, and take corrective action.
Absorbent costing systems are those that consider and accumulate all production costs, both fixed costs and variable costs, these are considered as part of the value of the manufactured products, under the premise that all costs are necessary to manufacture a product.
Variable Costing Systems they are the ones that consider and accumulate only the variable costs as part of the costs of the manufactured products, since the fixed costs only represent the capacity to produce and sell independently that is manufactured, When companies intend to constantly improve, in terms of productivity, cost reduction and manufacturing of goods and services more attractive and with shorter life cycles, traditional costing systems become obsolete since they are limited to correctly determining the cost of products, to value inventories, to pay for products sold and calculate profits. For this reason, in recent decades, several costing systems have been developed, such as activity-based costing, quality cost systems, goal-based costing, kaizen costing, and backflus costing,which accumulate costs in such a way that they facilitate the adoption of measures or actions aimed at continuous improvement and cost reduction.
Activity-based costing system (ABC).
This system starts from the difference between direct costs and indirect costs, relating the latter to the activities carried out in the Company. The activities are presented in such a way that the indirect costs appear as direct to the activities, from where they are transferred to the products (cost object), according to the amount of activities consumed by each cost object. In this way, the final cost is made up of direct costs and costs associated with certain activities, considered as those that add value to products.
Quality cost systems are those that financially quantify the organization's quality costs grouped into compliance and non-compliance costs, to facilitate management's selection of quality levels that minimize its costs.
Cost per objective system is a technique that starts from a target price and a planned profit level, which determine the costs that the company must incur to offer said product, target cost (Target cost = Target price - Desired profit). In this way we try to offer a
quality product - satisfaction of customer needs - and also offer a price that ensures demand.
C osteo Kaizen is a technique that proposes activities for the improvement of activities and the reduction of costs, including changes in the way in which the company manufactures its products, this is done by projecting costs from the proposed improvements, which must be achieved such as budgetary control.
Costeo backflus, is a condensed cost accounting system in which the production costs incurred are not recorded as it is transferred from one phase to another, but the costs incurred in the products are recorded when they are completed and / or sold.
COSTING METHODS BY ACTIVITY OR COSTING SYSTEM ABC.
According to Porter Michael (1987), Activity Based cost is based on real costs, that is why it is considered a contemporary cost system, ABC cost is based on the concept of value chain.
On the other hand, it is important to clarify that the costs of a product are made up of direct costs plus a proportional part of the indirect costs incurred in the productive activity. Thus, the central problem of cost accounting resides in the validity that is conferred on the distribution of indirect costs.
As Dearden says, “In almost all cases where accounting systems provide inaccurate (and therefore erroneous) information about product costs, the fault lies in the methods used to assign general manufacturing jacks to those products". The distribution of these costs always has an arbitrary basis and therefore any search for true cost should be abandoned. The reality indicates that no infallible method of distribution has been found, so it is necessary to renounce the certain knowledge of the costs through an objective method, of these situations and about that there are companies that achieve their ends better than others. must articulate the body of knowledge gathered from the different cost models,Cost models are the different procedures used to assign and accumulate product costs, to control the actions of those responsible and to provide relevant information that can be used in continuous decision-making in the short and long term.
Direct costs, that is, those costs that maintain a mathematically expressible functional relationship, do not present a reasonable doubt about their allocation or distribution over the cost of the products, but indirect costs find no objective explanation and justification in their imputation. Thus arises the tendency to renounce the distribution of indirect costs on the carriers, assigning them to the period as consumption or expiration of the maintenance of a certain level of productive capacity.
CHARACTERISTICS OF ABC COSTS
Cost standards are instruments for evaluating performance, as long as they are realistic. They encourage individuals to work more effectively.
They require close cooperation between the engineering and cost accounting departments to develop and improve standardization of product design, quality, and manufacturing methods.
Once established, its use is simple
Lets have the information more timely
Types of standards: theoretical and achievable
A. ADVANTAGES OF ABC COSTS
Variations in the standards lead management to implement cost reduction programs. These programs may include improved methods, better selection of personnel and materials, training, better quality of raw materials, and investments.
They are useful in decision-making, particularly if they are segregated according to their behavior: Fixed or Variable, and if the costs of materials or labor are based on expected cost trends. It gives rise to more realistic budgets.
B. DIRECT COSTS
Ø PRICE STANDARDS AND RAW MATERIAL EFFICIENCY
They are the unit purchase prices of direct materials. These should include the quantity discounts offered by the supplier, so a sales forecast is of utmost importance to determine the total units of finished articles that will have to be produced, and then the total quantity of direct materials that will be purchased.
Efficiency standards are predetermined specifications for the quantity of direct materials to be used in the production of a given unit. If more than one direct material is required to complete a unit, the individual standards should be calculated for each direct material.
Ø PRICE STANDARDS AND LABOR EFFICIENCY
Price standards are the predetermined rates for a period. The standard rate an individual will usually receive is based on the type of work they do and the person's experience of the job. Usually the wage rate is established in the union contract. If it is a non-union workshop the management.
Efficiency standards are predetermined performance standards for each hour of direct labor to be used in the production of a given unit. Time and motion studies are useful in developing direct labor efficiency standards
Ø STANDARDS OF INDIRECT MANUFACTURING COSTS
The process of establishing manufacturing indirect cost standards is completely different from that used for direct materials or direct labor, as it is made up of a variety of cost items which are affected differently by increases or decreases in the activity of the plant, which may or may not be proportional.
When determining the standard cost of a product, the quantity representing the indirect manufacturing cost is separated from the variable and fixed costs. The total variable manufacturing indirect costs will change in direct proportion to the level of production, the variable manufacturing indirect cost per unit will remain constant at the different activity levels within the relevant range. Fixed manufacturing overhead will remain constant at different activity levels within the relevant range. Fixed unit manufacturing overhead varies inversely; that is, as production expands, fixed manufacturing overhead is spread over more units, so that unit costs decrease.Due to this characteristic in cost behavior, the application of standard fixed manufacturing indirect costs for each product becomes a problem when production levels vary. Standard costing establishes a single standard cost per unit that is applied to products despite fluctuations in production.
Therefore, the application and analysis of the variations of the indirect manufacturing costs is very similar to the allocation of direct materials and direct labor, since all three are variable. However, the application of fixed manufacturing overheads to products despite fluctuations in production.
DECISION MAKING
The decision-making process is a series or concatenation of consecutive steps or interconnected stages that lead to an action or a result and its corresponding evaluation. The quality of the decisions made can be considered as a significant measure of the effectiveness of an individual manager, the management of a company, or a team of workers. In fact, some argue that management is simply about making decisions and that the essence of business conduct is revealed by studying decision making. Managers of all types of organizations (business, hospital, government, education) make decisions that involve competing goals and objectives, uncertainty and risk, as well as alternative courses of action to achieve the chosen objectives.Decision making can be conceived with a succession of steps that go from the clear identification of a problem to the execution and evaluation of the pertinent actions.
ENVIRONMENT OF RISK
The information that is available to solve the problem is incomplete, that is, the problem is known, the possible solutions are known, but the results that they can produce are not known with certainty.
In these types of decisions, the possible solution alternatives have a certain known probability of generating a result. In these cases you can use mathematical models or you can also use objective or subjective probability to estimate the possible result.
Objective probability is the possibility that an outcome will occur based on concrete facts, it may be figures from previous years or studies carried out for this purpose. In subjective probability, the result is determined based on personal opinions and judgments.
A. DECISION-MAKING PROCESS
Ø Generate alternative solutions
Ø Evaluate the alternatives
Ø Choice of the best alternative
Ø Implementation of the decision
Ø Evaluation of the results
B. TERMS OF DECISION MAKING
INFORMATION
Data that has been organized according to some logic. The operations manager could compare a week's production to that of the previous week, as a way of monitoring and controlling.
PROBLEM
Situation that occurs when the real state of things is not equal to the desired state of things.
They are opportunities to improve. That is why it is said that they are necessary and useful for administration.
OPPORTUNITY
Situation that occurs when circumstances offer the organization the possibility of exceeding the established goals and objectives.
RISK
Decision-making situation in which managers know that the odds of a given alternative will lead to a desired goal or outcome.
Situation that occurs when there are several possible alternatives and who decides can assign probabilities of occurrence of each of them.
CERTAINTY
It occurs when the decision maker knows in advance the results that his decision will generate.
Decision-making situation in which managers have accurate, measurable and reliable information on the results of the various alternatives they are considering.
UNCERTAINTY
A decision-making situation in which managers face unforeseen external conditions or lack the information necessary to establish the probabilities of certain events.
It occurs when there is no background on the subject to decide, the problem is new, the probabilities of occurrence of the various alternatives are ignored
PROBABILITY
A statistical measure of the probability of a certain event or outcome occurring.
SCHEDULED DECISIONS
Solutions for routine problems determined by rules, procedure or custom. Join together to address recurring problems whether complex or simple, if a problem is recurring and if the components can be defined, forecast, and analyzed, then you can be a candidate for a scheduled decision. Programmed decisions limit freedom, because the person has less space to decide what to do.
UNSCHEDULED DECISIONS
Specific solutions produced through an unstructured process to deal with non-routine problems. If a problem has not been raised often enough to be covered by a policy and it becomes so important that it deserves special treatment, it should be handled as an unscheduled decision. Most manager development programs aim to improve their abilities to make unscheduled decisions, generally taught to analyze problems systematically and make logical decisions.
EFFICIENCY
Ability to minimize the resources used to achieve the organization's objectives: "do things right".
Ability to use the available means in the most efficient way possible in achieving the stated objectives, carrying out an economic activity in a way that minimizes costs and uses the available resources optimally.
EFFECTIVENESS
Power to act or to achieve certain objectives. Equivalent term in administrative scope to the efficiency in the economic one.
The ability to determine the right objectives: "do what is indicated."
THE VALUE CHAIN
VALUE CHAIN CONCEPT
The chain of value, also known as analysis of the value chain, is a business management concept that was first described and popularized by Michael Porter in his best-selling 1985 Competitive Advantage: Creating and Sustaining Superior Performance.
A value chain is a chain of activities. A value chain is a chain of activities. Products pass through all activities of the chain in order and at each activity the product gains some value. The products go through all the activities of the chain in order and in each activity, the product gains some value. The chain of activities gives the products more added value than the sum of added values of all activities. The chain of activities gives products with more added value than the sum of the added values of all activities. It is important not to mix the concept of the value chain with the costs occurring throughout the activities. It is important not to mix the concept of the value chain with the costs that occur in all activities. A diamond cutter can be used as an example of the difference.A diamond cutter can be used as an example of difference. The cutting activity may have a low cost, but the activity adds much of the value to the end product, since a rough diamond is significantly less valuable than a cut diamond. Cutting activity can be low in cost, but activity adds much of the value to the end product, as a rough diamond is significantly less expensive than a diamond cut.since a rough diamond is significantly less expensive than a diamond cut.since a rough diamond is significantly less expensive than a diamond cut.
The value chain categorizes the generic value -adding activities of an organization. The value chain categorizes the generic value of activities that they add to an organization. The «primary activities» include: inbound logistics, operations (production), outbound logistics, marketing and sales (demand), and services (maintenance). The "primary activities" are: inbound logistics, operations (production), outbound logistics, marketing and sales (demand), and services (maintenance). The «support activities» include: administrative infrastructure management, human resource management, technology (R&D), and procurement. "Support activities" include: management of administrative infrastructure, human resource management, technology, and recruitment.The costs and value drivers are identified for each value activity. Costs and value factors are identified for each value activity. The value chain framework quickly made its way to the forefront of management thought as a powerful analysis tool for strategic planning. The value chain framework quickly made its way to the forefront of thought management as a powerful analytical tool for strategic planning. The simpler concept of value streams, a cross-functional process which was developed over the next decade,The value chain framework quickly made its way to the forefront of thought management as a powerful analytical tool for strategic planning. The simpler concept of value streams, a cross-functional process which was developed over the next decade,The value chain framework quickly made its way to the forefront of thought management as a powerful analytical tool for strategic planning. The simpler concept of value streams, a cross-functional process which was developed over the next decade, had some success in the early 1990s .
The value-chain concept has been extended beyond individual organizations.
Fundamental steps of the value chain : To build a value chain, the fundamental steps are:
1- Identify the industry value chain and assign costs, income and assets to value activities.
2- Diagnosing the causes of costs that regulate each value activity
3- Developing a sustainable competitive advantage, either by developing cost drivers better than the competitors, or by reconfiguring the value chain.
Competitive advantage cannot be analyzed within a company as a whole, but the value chain must be broken down into its different strategic activities, since each one incurs costs, generates income and is linked to assets, separating itself from those that represent a significant percentage of operating costs, or if the cost behavior of the activities are different, or if the competitors carry them out differently or if it has high potential to create differentiation. From this development, the return on assets can be calculated for each value activity. From the previous analysis, the causes of costs that explain the cost variations in each value activity must be identified. In traditional management accounting, the cost has only one cause,which is the volume of activity or production. In the value chain, the concept of production volume captures very little of the richness of cost behavior. Multiple cost causes coexist, which also differ through value activities. These can be structural or executive. The former are defined as those that, when chosen by the company, drive the cost of the product. These are: a) Scale, that is, the amount of investment to be made in areas of manufacturing, research, marketing resources, etc. b) Extension, that is, the degree of vertical integration. c) Experience, refers to the number of times in the past the company has done what it is doing now again. d) Technology,refers to the technological methods used at each stage of the value chain. e) Complexity, refers to the breadth of the line of products or services that will be offered to customers. As for the second, executive, are those that are decisive in establishing the cost position of a company and that depend on its abilities to execute them successfully. Within the list of these causes, the following can be mentioned:
1. Commitment to the working group.
2. Total quality management.
3. Capacity utilization.
4. Efficiency in the distribution of the plant.
5. Product configuration.
6. Taking advantage of existing ties with suppliers and / or customers through the company's value chain.
The third step, after identifying the value chain and diagnosing the cost causes of each activity, a sustainable competitive advantage can be gained through two ways: I. Controlling the cost causes better than the competitors, that is, You can analyze the causes and improve the performance of the cost causes, Benmarching can be used, on the competitors, knowing that this option must always be reviewed and reconsidered in the short term, since the competitor will operate in the same way. II. Reconfiguring the value chain: which implies that while the causes of costs are recomposed, the cost chain will have to be redefined in the activities where it is most needed. There are a number of difficulties in building the value chain.First, you need to calculate the price (revenue) for intermediate products, isolate key cost drivers, compute supplier and customer margins, and build cost structures for competitors, to name a few
COMPETITIVE COMPANIES
Essentially, the definition of a competitive strategy consists of developing a broad formula of how the company will compete, what its objectives should be and what policies will be necessary to achieve these objectives. Competitive strategy is a combination of the ends (goals) for which the company is striving and the means (policies) with which it is seeking to reach them
. HOW TO MAKE A COMPANY MORE COMPETITIVE
Decalogue of how to make a company more competitive. 1. Motivate your employees. Motivate your people. Motivation is key to increase the productivity of a company. Learn about how to motivate your people, make them a partner in your goals, Consider your company as a team that has to win a league in a competition where the other teams (their competitors) are also making great efforts to be in the first places of the final classification. make efforts to make the work environment in your company pleasant. Treat your management team, considering each member as someone very special, give them status and make them feel important in your company. 2. Innovate and improve. Be continually open to new ideas and innovations that can improve any aspect of your business. Do not close to any detail. Analyze the entire production process, marketing, dealing with suppliers, customer service. Encourage your employees to think and have ideas. 3. Exercise challenging leadership. Set achievable goals and challenges. Try to measure yourself against the best. If you want to make a company more competitive, analyze the success factors of the most competitive companies and establish realistic strategies that are stimulating for the teams that work in your company. 4. Technology at the service of the company. Don't let technology dominate you. Get acquainted with the most important innovation and technological developments. Make technology one of your best allies. Read the best tech magazines every now and then… Stay up to date. Consult with the best technicians to make correct decisions regarding technology. When you have a report, ask for another alternative. weigh and decide. The technology solutions provided by experts are not always convergent. 5. Internet and new information technologies. Become a fan of new information technologies and especially the Internet. Do not leave your competitors a decisive asset for your company, whatever the sector. Make the most intelligent and productive use of these tools. Don't be content with the topics. Learn for yourself. 6. Share your knowledge, make it public, receive inputs from your suppliers, clients, researchers, professionals… The knowledge that is shared grows. 7. Globalization. Really believe that the world is global. Get used to thinking global. Promote mental attitudes and skills for a globalized world. Think about the implications of the real globalization we are experiencing for your company. 8. Get down on the ground. Get into the detail from time to time, stand side by side with the people in your company who work in the various aspects of your company. Put in tension each and every one of the departments of your company. Show that you are willing to be on top of everything that happens in your company and can be relevant. 9. Think about the future. Continuously design the future of your business. Imagine how to improve your business. Whenever you can anticipate the future. Make courageous decisions that constitute firm bets for the future for the competitiveness of your company. Do not hesitate in what you have the certainty that can make your company more competitive. 10. Manage change. Societies change, countries change, generations change… Know how to manage times and changes…Related resources on How to make a company more competitive
4.4. JUSTIFICATION AND IMPORTANCE OF WORK
4.4.1 METHODOLOGICAL JUSTIFICATION
In this work, firstly, the problem consisting in the lack of generating a value chain to generate competitiveness in the company has been identified. On this problem, possible solutions have been formulated through hypotheses; then the purposes that the work pursues through the objectives have been established. All these elements have been formed based on the variables and indicators of the research.
4.4.2 THEORETICAL JUSTIFICATION
The work seeks to achieve the generation of value chains in the company "Envases plasticos KARLA SAC". Through the application of the value chain that is a management tool, it will allow us to carry out an internal analysis of the company, through its breakdown into its main value-generating activities.
4.4.3 PRACTICAL JUSTIFICATION:
Through the application of cost accounting and the contribution of the value chain, the company will achieve its objectives, becoming a competitive company in the market. This work contains The basic tool to diagnose competitive advantage and find ways to create and maintain it. Likewise, this cost system will contribute to facilitating business competitiveness in the context of economic globalization.
4.4.4 IMPORTANCE OF WORK
This work will allow the company to:
a.- Have an organized, directed, coordinated and controlled cost system that allows you to meet goals, objectives and mission; that is, that costs become deficient and ineffective in optimal.
b.- To diagnose the causes of costs that regulate each value activity
c.- Developing a sustainable competitive advantage, either by developing cost drivers better than the competitors, or by reconfiguring the value chain.
V. OBJECTIVES
5.1. OVERALL OBJECTIVE
Determine how the cost accounting model can contribute to the value chain of competitive companies.
5.2. SPECIFIC OBJECTIVES
1. Identify how the procedures established in the value chain facilitate proper development in competitive companies.
2. Identify how to couple cost accounting policies, so that this leads to the effectiveness of company management.
SAW. HYPOTHESIS FORMULATION
6.1. MAIN HYPOTHESIS
In the cost accounting model, it contributes to the value chain of competitive companies.
6.2. SPECIFIC HYPOTHESES
- If the application of the procedures in the value chain, facilitate obtaining competitive strategies; Then, it will help the company "Envases plasticos KARLA SAC" to meet its goals, objectives, mission and institutional vision.
- If the policies established in the cost area of the company optimize the established results, then it will contribute to the effectiveness of business management.
6.3. VARIABLES AND INDICATORS
INDEPENDENT VARIABLE
ü Cost accounting model
INDICATORS
ü Accounting Process
ü Use of accounting information
DEPENDENT VARIABLE
ü Value chain of competitive companies
INDICATORS
ü Decision making
ü Valuation for competitiveness
VII. METHODOLOGY
7.1. KIND OF INVESTIGATION
This work will be of the application type, to the extent that it is applied by the company to strengthen the cost system and make way for the achievement of the goals and objectives of this type of entity.
7.2. INVESTIGATION LEVEL
The research to be carried out will be at the descriptive-explanatory level, since the cost systems will be described.
7.3. INVESTIGATION METHODS
The following methods will be used in this investigation:
1) Descriptive.- To specify all aspects of the internal control system and the effectiveness of the municipalities.
2) Inductive.- To infer the information of the sample in the population and determine the conclusions that the investigation merits. Information from the internal control system on the effectiveness of the municipalities will be inferred.
7.4. DESIGN OF THE INVESTIGATION
Design is the plan or strategy that will be developed to obtain the information required in the investigation. The design to be applied will be the Non-Experimental, Transectional or transversal, Descriptive, Correlational-causal.
Non-experimental design is defined as the investigation that will be carried out without deliberately manipulating the variables. In this design, phenomena are observed as they occur in their natural context, and then analyzed.
The cross-sectional or cross-sectional research design to be applied consists of data collection. Its purpose is to describe the variables and analyze their incidence and interrelation at a given moment.
The descriptive transectional design that will be applied in the work, aims to investigate the incidence and the values in which the research variables are manifested.
The correlative-causal Transectional research design that will be applied will serve to relate between two or more categories, concepts or variables at a given moment. It will also be about descriptions, but not about categories, concepts, objects or individual variables, but about their relationships, whether they are purely correlational or causal relationships. Through this type of design the research elements are associated.
7.5. POPULATION OF THE INVESTIGATION
7.5.1. The population will be made up of all the workers of the company "TOSSIR SAC Plastic Packaging Laboratory". Number of workers 120 people including executives, employees and workers.
TYPE OF SAMPLING APPLIED
The type of sampling applied is STRATIFIED SAMPLING. Sampling in which the population is previously divided into a number of sub-populations or strata, prefixed beforehand. Then, within each stratum, a simple random sampling is carried out to determine the corresponding sample.
STRATIFICATION OF THE POPULATION
| SUB-POPULATIONS OR STRATUMS | TOTAL |
| OFFICIALS | fifteen |
| EMPLOYEES | 35 |
| WORKERS | 70 |
| TOTAL | 120 |
Source: self made.
7.5.2. APPLICATION OF SIMPLE RANDOM SAMPLING TO THE STRATUMS OF THE POPULATION.
Formula to determine sample size
To define the sample size, the methodological formula for finite populations has been applied:
Where:
| N | It is the size of the sample to be taken into account for the field work. It is the variable that you want to determine. |
| P and q | They represent the probability of the population to be included or not in the sample. According to the doctrine, when this probability is not known from statistical studies, it is assumed that p and q have a value of 0.5 each. |
| Z | Represents the standard deviation units that in the normal curve define an error probability = 0.05, which is equivalent to a 95% confidence interval in the sample estimate, therefore the Z value = 1.96 |
| N | The total population of the company "TOSSIR SAC Plastic Packaging Laboratory". It is 120 |
| EE | Represents the standard error of the estimate, according to the doctrine, it must be 0.10 or less. In this case 0.09 has been taken |
n = 35
7.6. DATA COLLECTION TECHNIQUES
The techniques that will be used in the investigation will be the following:
ü Questionnaire
ü Interviews
ü Sample
Documentation Sources:
Primary Sources:
ü Interviews with administrative staff.
Secondary Sources:
ü Books
ü Manuals
ü Dictionaries
ü Internet
ü Thesis
7.7. ANALYSIS TECHNIQUES
The following techniques will be applied:
1) Documentary analysis. - This technique will allow to know, understand, analyze and interpret each one of the norms, magazines, texts, books, Internet articles and other documentary sources.
2) Inquiry.- This technique will facilitate having qualitative and quantitative data of a certain level of reasonableness.
3) Reconciliation of data.- The data of some authors will be reconciled with other sources, so that they are taken into account.
4) Tabulation of tables with quantities and percentages. - The quantitative information will be ordered in tables that indicate concepts, quantities, percentages and other useful details for the investigation.
5) Understanding graphics.- Graphics will be used to present information and to understand the evolution of information between periods, between elements and other aspects.
6) Others.- The use of instruments, techniques, methods and other elements is not limiting, it is merely referential; therefore, as necessary, other types will be used.
VIII Schedule
For the Thesis Plan, a period of one year has been determined and applied, taking into account the structure of the Thesis Plan of the Thesis Seminar I course, for which the GANT Diagram is presented analyzing the activities in time.
ACTIVITIES PERIODS
| EFMAMJJASOND
Preparation and approval of Title x Bibliographic Review xx Elaboration of the theoretical framework xx Gathering information xxx Xxx data processing Preparation of the final report xx |
IX Budget
GOODS
Office supplies S /. 100
Data processing equipment 300
Impressions, CD 120
SERVICES
Advisory services 1 000
Impressions 140
Text, Internet and phones 200
Mobility, Snacks 300
Total S /. 2 160
VIII. BIBLIOGRAPHIC REFERENCES
- Backer Jacobsen; Ramírez Padilla 1996 "Cost Accounting" Mexico edit. Mc Graw Hill 2nd Edition Carrión Nin José Luís 2002 "STANDARD COSTS - ABC FOR THE PLASTIC INDUSTRY - PVC Piping and Accessories Line". (Case: SURPLAST SAC) Thesis presented to choose the Academic Degree of Master in Accounting, mention in Costs and Budgets, Universidad Nacional Mayor de San Marcos, Faculty of Accounting Sciences, University School of Post - Degree
3. Cecil Gillespie, Editorial Diana, México, First Accounting and Cost Control, Author Edition, Page 3
4. Cooper & Kaplan, “How Cost Accounting Distorts Product Costs” INCAE magazine volume III No. 1
5. Dearden 1976 “Cost Accounting and Financial Control Systems” Spain edit. FEI
- DEL RIO GONZALEZ, Costs IDrucker Peter F. (2004) Management in the Future Society. Bogotá. Grupo Editorial Norma.Gaudino Ovidio 2001 “Gestión y Cosos” Buenos Aires edit. MacchiEnrique Marchiaro Rafaelino (2008) Municipal law as postmodern law: Cases, method and legal principles. Buenos Aires. Editora Ediar.Ivancevich, Lorenzi, Skiner with Philip B. Crosby, 1997 “QUALITY AND COMPETITIVENESS MANAGEMENT”. Spain edit Mc Graw Hill Interamericana de España SA Pag. 158-159
11. Sáez Torrecilla Ángel Fernández Fernández 1997 “Cost Accounting” Spain edit Mc Graw Hill 1st edition volume I
1.- Richard R. Schneider. courage cost
Carrión Nin José Luís 2002 "STANDARD COSTS - ABC FOR THE PLASTIC INDUSTRY - PVC Piping and Accessories Line". (Case: SURPLAST SAC) Thesis presented to choose the Academic Degree of Master in Accounting, mention in Costs and Budgets, Universidad Nacional Mayor de San Marcos, Faculty of Accounting Sciences, University School of Post - Degree
Sealtill Alatriste, Twenty Eighth EditionEditorial Porrual, SA, México DF.
Cecil Gillespie Cost Accounting
Accounting and cost control, author: Cecil Gillespie, Editorial Diana, México, First Edition, Page 3
GARCÍA COLÍN, Cost accounting
DEL RIO GONZALEZ, Costs I
Porter Michael 1987 "Creating and Sustaining Superior Performance", Mexico edit, CECSA
Porter Michael 1987 "Creating and Sustaining Superior Performance", Mexico edit, CECSA
Dearden 1976 "Cost Accounting and Financial Control Systems" Spain edit. FEI pag. 48
Sáez Torrecilla Ángel Fernández Fernández 1997 “Cost Accounting” Spain edit Mc Graw Hill 1st edition volume I
Ivancevich, Lorenzi, Skiner with Philip B. Crosby, 1997 "QUALITY AND COMPETITIVENESS MANAGEMENT". Spain edit Mc Graw Hill Interamericana de España SA Pag. 158-159
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