Difference between ABC and RCA accounting system with low profit management

The purpose of this article is that a number of American companies faced stiff competition in the 80s (mainly from Asian companies such as Japan), a number of managers in American home-based companies turned to their accounting systems as resources. They looked for information to help in the competition scene, but realized that their accounting systems did not have this feature. Accounting systems to support financial reports that were about the preparation of projects and information about products and services that were out of the normal form, and such information for designing and controlling decision reached the managers when it was too late. At this time, Robin Cooper and Robert Kaplan introduced ABCIt was seen as a path to regaining system cost relevance, and US companies began to expand ABC systems. Case studies reported these adaptations in chronological order. The views of the managers of these products returned to the top.Changes in product pricing, advertising, and complex decisions based on ABC costs have led to expansions in branding and competition for a number of US companies. At the same time, a number of competing progressive companies attacked the work of American houses, which were called low-profit companies. By using the word "low-profit", I mean "low-profit and low-income" companies.It is not that they discount with short-term financial goals and often without valuing the impact of the customer and other characteristics. Rather, I am referring to companies that avoid waste through a specific type of management and production system. For example, the company manufactures products of Toyota or other types of it. Waste includes any activity or renewal of the resource that the customer does not see the value of paying for it. A low profit production system toThey are trying more than production for a forecast and searching for the maximum use of fixed costs in order to reach a single flow through valuation and achieving the real needs of customers. These companies do not use cost-based activity in their accounting management systems. Likewise, they do not adapt ABC so that it expands further and destroys its competition with American accounting management systems. Today, ABC systems have grown and expanded beyond working at home. These cost management systems emphasize the expansion of improvement as well as production and service costs. But global competition in several industries is increasing decisively, and managers feel dissatisfied with the information in their accounting systems, which includes ABC.

Difference between ABC and RCA accounting system with low profit management Keywords:

Accounting systems , income management - profit management - costing , activity-based costing