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    Factors That Are Causing Changes in The Contemporary Business Environment How The Changes Affect The Way Those Firms and Organizations Use Cost Management Information

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    Jin Handsome
    Firms determine their mission by understanding their goals, strengths, and areas for improvement. They gather information on costs and performance to develop strategies to achieve their mission. Firms respond to changes by adapting their management structure and technologies. They now consider both financial and non-financial measures of performance. Strategic financial measures assess revenues, costs, and cash flow while strategic non-financial measures assess quality, productivity, and service. Factors like increased competition, new technologies, and focus on customers are causing firms to rely more on non-financial cost information and give greater importance to quality, customers, and other non-financial factors.

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    Factors That Are Causing Changes in The Contemporary Business Environment How The Changes Affect The Way Those Firms and Organizations Use Cost Management Information

    Uploaded by

    Jin Handsome
    922 views2 pages
    Firms determine their mission by understanding their goals, strengths, and areas for improvement. They gather information on costs and performance to develop strategies to achieve their mission. Firms respond to changes by adapting their management structure and technologies. They now consider both financial and non-financial measures of performance. Strategic financial measures assess revenues, costs, and cash flow while strategic non-financial measures assess quality, productivity, and service. Factors like increased competition, new technologies, and focus on customers are causing firms to rely more on non-financial cost information and give greater importance to quality, customers, and other non-financial factors.

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    Firms determine their mission by understanding their goals, strengths, and areas for improvement. They gather information on costs and performance to develop strategies to achieve their mission. Firms respond to changes by adapting their management structure and technologies. They now consider both financial and non-financial measures of performance. Strategic financial measures assess revenues, costs, and cash flow while strategic non-financial measures assess quality, productivity, and service. Factors like increased competition, new technologies, and focus on customers are causing firms to rely more on non-financial cost information and give greater importance to quality, customers, and other non-financial factors.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    922 views2 pages

    Factors That Are Causing Changes in The Contemporary Business Environment How The Changes Affect The Way Those Firms and Organizations Use Cost Management Information

    Uploaded by

    Jin Handsome
    Firms determine their mission by understanding their goals, strengths, and areas for improvement. They gather information on costs and performance to develop strategies to achieve their mission. Firms respond to changes by adapting their management structure and technologies. They now consider both financial and non-financial measures of performance. Strategic financial measures assess revenues, costs, and cash flow while strategic non-financial measures assess quality, productivity, and service. Factors like increased competition, new technologies, and focus on customers are causing firms to rely more on non-financial cost information and give greater importance to quality, customers, and other non-financial factors.

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    1. How does a company determine and implement its mission?

    A company determine and implement its mission by knowing their goals, purpose, their
    working environment, and knowing where they are good at and where they need to improve by
    gathering cost management information, etc. These things will help a company to decide where they
    should focus and develop strategies that they will implement to achieve their mission. Their mission
    and strategies will be disseminated to the whole company to have a proper coordination and
    participation.

    2. How have firms responded to changes in business?

    Firms respond to changes by adapting to the changes. Firms changes their management
    organization in respond to the changes and they also improve their working environment by having
    technologies that can help them to keep up on the vast changes happening in the business
    environment. And now, firms are not only confined about their financial aspect but also to the
    nonfinancial aspects because it is becoming more important today. They also now being proactive
    than reactive so whatever circumstances happens, they are prepared.

    3. Contrast the use of strategic financial measures with the use of strategic nonfinancial measures.

    Strategic financial measures are used to determine the success of performance through
    revenues, cost, cashflow, and other related to financially while the strategic nonfinancial measures
    are used to know the performance through the quality, productivity, service, etc.

    4. What are some of the factors in the contemporary business environment that are causing changes
    in business firms and other organization, and how are the changes affecting the way those firms and
    organizations use cost management information?

    How the changes affect the way those


    Factors that are causing changes in the
    firms and organizations use cost
    contemporary business environment
    management information
    Since there is an increase in global
    1. Increase in global competition competition, firms used cost management
    information to sustain competitiveness.
    With this, cost management information
    regarding production is more on about the
    2. Advances in manufacturing technologies
    machineries (whether to replace, repair or
    not) rather than the labor work performance.
    Cost management information are now
    3. Advances in information technologies, the easily obtained and accessed by the
    internet and e-commerce individuals within the firm and the business
    environment.
    Firms focuses more on nonfinancial
    information because the new business
    4. Greater focus on the customers
    process focuses on the satisfaction of
    customers.
    a new form of organization has a lot
    changes such as focusing more on quality,
    5. New forms of management organization
    on critical success factors and firms take
    importance on the nonfinancial information.
    The changes on the three environments are
    6. Changes in the political, social and more on the nonfinancial aspects thus,
    cultural environment making nonfinancial information important
    for firms

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