Doug Webster 1

Triangle, Virginia, United States

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Cost Management

Delivering value requires the balancing of what is to be delivered as an end product, the cost of that delivery, and the risk associated with the other two. Most organizations have a poor understanding of the cost of delivery of their various products and services, or the processes used to deliver those products and services. As a result, organizations typically subsidize the cost of delivery of some products and services through costs assigned to other products and services. Such organizations can thus not make decisions that balance performance, cost and risk in a manner that optimizes overall value. My doctoral dissertation was on the use of activity based costing (ABC) to make improved decisions that were strategically aligned, and I co-authored the book "Activity Based Costing and Performance" in 1994. Whether an organization seeks to implement a formal ABC system into their cost accounting, simply wants to use ABC principles to improve design of a traditional cost accounting system, or simply perform an activity-based cost analysis for particular decisions, I have years of experience and leadership in this subject.

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