The role of resource consumption accounting in organizational change and innovation

Technological advances and global economic conditions, of which we could not assess the speed and results, require businesses to design their processes in order to keep up with these conditions. For this purpose, businesses, in a constantly changing environment of global competition, should be open...

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Bibliographic Details
Published in:	Economics, Management, and Financial Markets Management, and Financial Markets, 2017-06, Vol.12 (2), p.131
Main Authors:	Yilmaz, Baki, Ceran, Mehmet Burak
Format:	Article
Language:	eng
Subjects:	Accounting Activity based costing Companies Competition Consumption Cost accounting Cost allocation methods Economic aspects Economic conditions Innovations Management decisions Marketing Methods Organizational change Organizational structure Readiness Workplaces
Online Access:	Get full text
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Summary:	Technological advances and global economic conditions, of which we could not assess the speed and results, require businesses to design their processes in order to keep up with these conditions. For this purpose, businesses, in a constantly changing environment of global competition, should be open to organizational change and innovative ideas, build sufficient competence inside their organization, and show readiness for implementation at all times. Organizational change and innovation--which means new or significantly modified products or processes, a new marketing method or renewed organizational structure in business practices, workplaces, and external relations--would also require accounting units to be updated as a result of these developments. Due to the traditional volume-based cost allocation method's failure to attain correct product cost allocation, innovative and modern cost allocation systems have been developed. Resource consumption accounting which is one of the modern cost allocation methods will be presented in this study, within the scope of organizational change and innovation, while discussing the differences between resource consumption accounting and the traditional volume-based cost allocation method.
ISSN:	1842-3191 1938-212X