Material Flow Cost Accounting

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Material Flow Cost Accounting. Part 3:. Importance.

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CONTENTS. 01. Significance of MFCA. Describes the benefits of MFCA.

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01. SIGNIFICANCE OF MFCA.

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Significance of MFCA. Proper understand ability and identification of inefficient areas.

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Significance of MFCA. I nnovation. A ccuracy in product costing.

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02. MFCA AS AN USEFUL INNOVATION.

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2. 3. 1. 4. MFCA as an useful Innovation. Extension theory.

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A MFCA innovation is adopted at a rapid pace once information about it is communicated through networks. MFCA as an innovation is communicated rapidly among businesses and it is reasonably expected that adoption of MFCA at an accelerating pace will occur in future..

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03. CHARACTERISTICS OF MFCA INNOVATION.

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C ompatibility with existing values. Relative Advantage Over Current Practice.

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04. EFFECT OF MFCA TO THE COMPANIES.

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Effects of MFCA to the companies 01 02 03 04 05 06 0 7 Improve company collaboration to optimize full-chain resource efficiency Able to analyze a single isolated process Able to model a whole factory production line E ven up-scaled to visualize a product’s full supply-chain B etter understanding o f its potential resource and financial losses L arger number of suppliers and firms to evaluate their own inefficiencies E ffectively target the areas it can make the greatest savings.