Bedryfs- en bestuursrekeningkunde as hulpmiddel vir die ontwikkeling van vervaardigingsondernemings in die Vaaldriehoek

Abstract

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 structured 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.