Term Paper _Cost Accounting Essay Example | Topics and Well Written Essays - 750 words

Term Paper _Cost Accounting - Essay Example In this novel the authors have used their creativity to talk about the managerial issues faced by employees in the western working environment and the possible repercussions of the prevalent state of affairs that are required to be addressed on immediate basis in the corporate sector before it’s all too late. Theory of Constraints The authors add the element of surprise and interest in the story by subjecting Alex Rogo to â€Å"cross-road† situation where he has to save his job in a period of just 90 days bearing in mind that his domestic life is also not running smoothly as his marriage is turning out to be disaster as well. Under such intricate scenarios the authors try to explain and introduce the famous â€Å"Theory of Constraints†. The Theory of Constraints is one the most widely used theories in the business environments today as it is applicable to a wide variety of processes involved in Operations and Project management. Bottlenecks Identifying bottleneck s at the right time is also another aspect addressed in the book. Bottlenecks and their identification are very important managerial tasks that the corporate governance looks to be performed at the right time by its managers. The bottlenecks refer to the blockages and hindrances that a particular department faces during the process of accomplishing the desired goals. Bottlenecks ultimately end up bringing loss of numerous working hours and costing huge percentages of revenues every year for a lot many companies in the corporate world. The idea of bottlenecks and means of identifying and improving on them are also described by using the personality of Alex Rogo and his team in the novel. The advantages of rectifying bottleneck activities and enhancing the efficiency of the system on the whole, were portrayed in the novel in terms of the goals achieved by Alex Rogo and his team, yielding huge benefits. Socratic Method An outstanding feature of the story is the Socratic Method, a magic al tool that solves the problem without any outside assistance being craved for, used by the authors. A character, Jonah, introduces this methodology to Alex and his team in the novel. The Socratic Method is to ask a question regarding a problem to the people affected. This question will initiate a series of questions that the affected would answer themselves and ultimately will reach a solution to the problem. This method was not only fruitful for Alex in his professional life but it also turned the tables in his favor in his domestic life with his wife. The rhetoric used in the novel by the authors involves the reader in the story and makes one feel as if the situation is being experienced or witnessed in real time and this consequently enhances the learning and experience. Activity Based Costing In relation with theory of Constraints various vital concepts of Management and Cost Accounting were also discussed in the book such as the severity of Activity Based Costing (ABC) in ide ntifying the weak links or inefficient practices in the process chains and why Traditional Cost Accounting (TCA) should not be used. ABC focuses on â€Å"what needs to be done?† while TCA is more concerned about â€Å"how it needs to be done?† because of being process focused ABC enables the companies to identify bottlenecks and to reduce costs at every stage in the production process while TCA is just about getting a task done in a conventional method without questioning the