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Video of Trends in Cost Accounting Throughout the Value Chain. Cost Accounting Course. CPA Exam BAR. CMA Exam in Costs Accounting course by Farhat Lectures. The # 1 CPA & Accounting Courses channel, video No. 29 free certified online
What are the current trends in cost accounting across the value chain? This lecture shows CPA (BAR) and CMA exam candidates how cost information supports strategic decisions at every stage of the value chain — from research and development through design, purchasing, production, marketing, distribution, and customer service. Professor Farhat covers key concepts like Design for Manufacturing, Just-in-Time, CRM, outsourcing, cost of quality, and ERP systems. Ideal for accounting and business students studying managerial and cost accounting.
Try it free at farhatlectures.com — interactive exercises, lectures, simulations, cases, multiple choice, and AI tools for CPA, CMA, EA and students.
Video Timeline & Key Concepts:
0:00 — Introduction
0:52 — Research & Development: partnering with suppliers and evaluating materials for cost-effective designs
1:58 — Design: Design for Manufacturing (DFM) to balance complexity and manufacturing cost
3:52 — Purchasing: performance measures and benchmarking to evaluate suppliers
5:41 — Production: work cells and Just-in-Time (JIT) to minimize inventory cost
7:41 — Marketing: Customer Relationship Management (CRM) and profitability per customer
9:09 — Distribution: outsourcing to specialized third parties for efficiency
10:43 — Customer Service: cost of quality and Enterprise Resource Planning (ERP) systems
Frequently Asked Questions:
What is the value chain in cost accounting?
The value chain is the sequence of business functions that add value to a product or service, including research and development, design, purchasing, production, marketing, distribution, and customer service. Cost accounting supplies cost information at each stage.
What is Design for Manufacturing (DFM)?
Design for Manufacturing is an approach where cost accountants help engineers balance product complexity with manufacturing cost during the design stage, reducing costs before production ever begins.
How does Just-in-Time (JIT) reduce costs in production?
Just-in-Time minimizes inventory by producing and receiving materials only as needed. Combined with work cells that replace traditional assembly lines, JIT lowers carrying costs and reduces waste.
What is the cost of quality?
The cost of quality captures the trade-off between preventive and inspection costs incurred to avoid defects and the rework and failure costs incurred when defects occur. Managing it improves both quality and profitability.
How do ERP systems support cost management?
Enterprise Resource Planning systems integrate company-wide data into a single platform. This prevents duplication, improves the flow of cost information, and helps managers make better, more timely decisions across the value chain.
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