Book Reviews

Cost Management for Today's Advanced Manufacturing

By Computer Aided Manufacturing-International (CAM-I)

Reviewed by Steve Buchwald, CIRM

I thought it apropos to share with you a book about cost accounting. Why? It will be a good review for anyone taking the support function portion of the CIRM certification.

The book, 'Cost Management for Today's Advanced Manufacturing' is a summary of an in-depth study of the modern cost accounting system conducted by CAM-I. In 1986, Computer Aided Manufacturing-International (CAM-I) formed a coalition of industrial organizations, professional accounting firms, government agencies, and universities to address the issue that existing cost accounting systems and cost management practices cannot serve the objectives of automated manufacturing environments.

Today, progressive accounting information is presented not only in financial terms but in terms that are understandable and actionable by the entire organization. The customers of the finance organization are broadening and management accounting is viewed as a combination of: cost accounting in the traditional sense; performance measurement, an indication of the effectiveness of the organization; and business management, the process of managing and re-eingineering the current processes for constant improvement.

CAM-I has been in the forefront of the management accounting revolution and this book (which even includes a chapter on cost accounting in Japan) is required reading for anyone interested in improving cross functional relationships in their organization. I'm so sure you will want to read this book that I am going to raffle it off at one dollar per chance during the November chapter meeting.