Research Paper on:
Hewlett Packard and Cost Management

Unformatted Sample Text from the Research Paper:
information upon which decisions are based. These tools may be in the form of established paradigms or analysis tools. The strategic tools gain a great deal of attention. However, the  accounting tools are also valuable, and with a good management costing tool the value of an organisation may be enhanced if the tool is used correctly. A recent model  used to give a clearer picture of costing to management is Activity Based Costing (ABC). The advent of technology and the analysis power and flexibility that computing provides this tool  has enhanced its use. The general perception is that this is a system that can add value and increase the reliability of management accounting decision. However, it ids like any  other tool, and the results will only be as good as the input and the way it is used. Hewlett Packard are often cited as a good example for the  effective use of ABC, using it to add value following a successful implementation. This is not always that case, even within Hewlett Packard. To use a tool correctly the constraints  and limitations as well as perceived advantages need a full comprehension. In order to examine this first stage is to define what is meant by ABC and then look at  the application of this at Hewlett Packard, both the Boise Surface Mount Centre in Idaho and the Colorado Springs Division. Activity based  costing is one of the more modern methods of costing and is seen as being more accurate and therefore more effective if used in a decision making process. This is  a system that looks to address the weaknesses we have seen in absorption costing. The theory that underlies this system is that there is a higher degree of ability