Cost Reengineering In Iranian Insurance Companies
Subject Areas : Management Accounting
1 - ندارد
Keywords: Reengineering, Cost, Insurance Companies, Activity Based Costing, economic value added,
Abstract :
The new organizations establish base on concepts such as value customer, valuebased management, value chain analysis, value engineering, wealth (value) creation.Three factors, cost, quality & quantity, are very important on continuingorganizations. The companies try to delivery their products & services in at least cost,high quality & quantity to customers. Accounting information systems must be updated with new conditions business & customers' needs. Updated accountinginformation systems provide information for make decision, planning, control & othertasks of management. Cost management system has been designed to reply to newmanagement needs in currently business environment. Cost management system has astrategic view to cost, control & reduction expenses, increase quality & quantity.This article explains, how to adjust the costing framework in iranian insurancecompanies by new approaches in managerial accounting. Integrated activity basedcosting & economic value added model for determining cost of policies & fair price ininsurance company will be discussed. The findings show that 1. cost of the policiesshould be adjusted, 2. Integrated activity based costing & economic value addedmodel can be used in iranian insurance companies.
