Management Accounting in New Product Introduction Process
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New product development process is one of the key processes of every organization simply due the fact that the majority of product costs gets fixed during the development phase. Competitive global wind market puts pressure to the whole value chain in order to develop products that lower the cost of energy. This study addresses the relationship between management accounting and new product development process in order to develop new products with a desirable cost levels. The main goal of this study is to discuss how to improve the level of cost consciousness within the development engineers and...
New product development process is one of the key processes of every organization simply due the fact that the majority of product costs gets fixed during the development phase. Competitive global wind market puts pressure to the whole value chain in order to develop products that lower the cost of energy. This study addresses the relationship between management accounting and new product development process in order to develop new products with a desirable cost levels. The main goal of this study is to discuss how to improve the level of cost consciousness within the development engineers and to implement management accounting methods to the existing product introduction process. This thesis is aimed at enhancing the overall cost consciousness within the development process and organization by providing ideas on how to monitor the product cost structure during the design process. As a result of this work the NPI-process is updated with a framework where management accounting techniques are implemented to the project workflow.
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