Measure Costs Right-Make the Right Decision

Topic

Measure Costs Right-Make the Right Decision

Instructions

Discuss the article:

Cooper, R., & Kaplan, R. S. (1988). Measure Costs Right: Make the Right Decision. Harvard Business Review, 66(5), 96-103.

Answer preview

The article Measure Costs Right: Make the Right Decision, highlights the roe which is played by cost accounting in the development of operational strategy for organisation. Cost information is presented as a critical component in the development of strategy in terms of pricing marketing and other aspects of operations. Within an production system, information regarding some of the services is the main element which causes the distortion of cost information (Cooper & Kaplan, 1988). Once the information becomes distorted, right decisions cannot be made within the organisation.

Word count: 307