| Summary: | For the past ten years, manufacturing concerns in the Vaal Triangle have been experiencing
difficult times. Various companies have decreased their operations and work-force, and
certain companies have had to close their doors. This has brought about high levels of
unemployment and poverty in the region, which leads to high levels of crime. To ensure the
survival of the Vaal Triangle community, the closure of more manufacturing companies
should be prevented. A vast amount of industrial development and job creation is needed.
A fundamental goal of every manufacturer, is to be profitable and to gain, or to retain, the
competitive advantage. In order to succeed in this, a manufacturer has to manufacture the
highest quality product possible, at the lowest possible cost. Traditionally, cost accounting has
all along focussed on determining the cost of producing their products. In the modem
manufacturing environment, although it is still important to know the cost of production, it is
no longer sufficient. Companies need accurate cost information so as to integrate product
development, production, marketing, and after-sales service to customers. In recent years,
rapid technological development has brought about change in production methods and
available products. Global competition has made it increasingly difficult to obtain and to
retain the competitive advantage and manufacturers have increasingly focused on cost
management, which produces information useful to managers in costing, planning, controlling
and decision-making. Various new techniques were developed, including benchmarking, total
quality management, continuous improvement ("kaizen"), activity based costing and
management, business process re-engineering, the theory of constraints, target costing, and life
cycle costing.
In this study, the application of Cost and Management Accounting as a tool for the
development of manufacturing concerns in the Vaal Triangle, is investigated. Data on the
current use of Cost and Management Accounting by manufacturing concerns in the Vaal Triangle, and the performance of these concems, were collected by means of a st~ctured
questionnaire.
It was found, that manufacturers use many Cost and Management Accounting methods and
techniques, but that some of these are not used effectively. It is recommended, that intensive
training programmes be implemented so as to ensure that all employees are properly trained
and knowledgeable in the methods and techniques applicable to their specific function, thus
ensuring the attainment of company goals and a competitive advantage. This will assist in the
development of manufacturing concems in the Vaal Triangle, ensure their survival and
prosperity, and lead to job creation and the prosperity of the Vaal Triangle region and all its
people. === Thesis (M.Com. (Industrial Psychology))--Potchefstroom University for Christian Higher Education, 2003.
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