Activity-based cost management system

Technological advances in manufacturing industries have changed the processes involved in producing end-products, the elements within the processes, the end-products themselves, and, in turn, the management and control of these processes. Much of what was performed by direct labor is now performed by automated machinery with the aid of computers. Thus, the contribution of direct labor is diminishing while that of indirect labor is stadily increasing. Also, nonvalue-added process activities are being identified and eliminated to streamline processes' products are being designed for manufacturability and maintainability' organizational lines are fading as more work is being performed by cross-functional teams' and managemetn schemes are having to adapt to enable effective control in this new manufacturing environment.