Financial management in procurement should aim to maximise value for every member in the value chain while minimising costs and reducing risks (Monczka et al., 2009)
Financial management in procurement is a broad subject encompassing areas such as financial planning, control and decision-making in purchasing and supply management (Drury, 2007; Handfield and Nichols, 2002). The aim of financial management in procurement is to maximise value for every member in the value chain while minimising costs and reducing risks (Braithwaite and Samakh, 1998; Monczka et al., 2009). Choosing the appropriate costing technique is an important step in achieving this goal.
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No purchasing professional can afford to be unaware of the various cost accounting approaches (Lysons and Farrington, 2006)
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Cost-to-serve methods are flexible and free from heavy prescriptions … [they] can be applied at varying levels of sophistication from simple spread sheets to...
What separates EVA from other performance metrics ... is that it measures all of the costs of running a business-operating and financing (Stern Stewart and Co).