Cost management from the perspective of manufacturing theory

Abstract

This study attempts to reinterpret cost management, in particular, costing from the perspective of open source manufacturing, which implies “governing the flow of customer-oriented design information.” First, a simple explanation is presented of ABC, throughput accounting, and cost planning, described as the traditional costing systems, as well as their alternatives. Thereafter, an introduction to more recent methods, such as Life Cycle Cost Modeling and J-cost theory, are presented. In summary, production is regarded as the transfer of design information and the cost concept of the starting point for open-source manufacturing, which perceives the product cost as the occupancy fee for informational media, is illustrated. The basic idea is that design information creates value and media creates cost.