The paper discussed a vital and challenging aspect of healthcare, by taking into account a way some of the issues related to this topic can be addressed. Moreover, it was a proof of how an initiative can change perspective on a micro level, and why not to the overall medical system. Such initiatives are welcomed, and it must be remembered that the success of the project is a factor of the implication of people involved.
Nowadays, an important issue when considering cost accounting are the physical distribution activities and other marketing functions. A solution to this issue is the activity-based costing (ABC) for marketing.
The main outcome of this technique is to help marketing managers in their decision making process related to profitability, pricing, and distribution areas. The most important marketing activities considered are selling, warehousing, packing and shipping, and administrative.
This article provided a clear distinction on importance of marketing costs, and the ways these are assessed. Because recent years were characterized by advancement in marketing, and also on the costs related to this, I think it is necessary to consider the ABC technique in order for a manager to take the best decisions for the company he is running.
In order to assess the quality of distribution channels, an ABC analysis can be used. The advantage of this technique over standard approach to channel profitability is the fact that it is estimating cost more accurately, which is very important for a company to decide where it is selling its products. However, ABC has also a main disadvantage which is related to its assumption that all costs are product-driven so it should be allocated to products.
Another approach is the strategic cost management approach, which extends the assumption of ABC to consider also that costs are driven by the customers and by the distribution ...
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