CHAPTER I
INTRODUCTION
1.1 Background
Cost management information consists of financial information about costs and revenues, and nonfinancial information about customer retention, productivity, quality, and other key success factors for the organization. Cost management is the development and use of cost management information. A strategic understanding of cost management is so important that many senior financial managers are coming back to school to learn more about strategy, competitive analysis, and new cost management techniques. Knowing how to do the accounting alone, no matter how well you do it, is by itself no longer sufficient. 1.2 Purpose of Writing
The general purpose of writing is to complete the final task of the subject of Cost Management—module assignment—in the fifth semester. It shows how well and how far we have understood this subject.
1.3 Methodology * The method used in the process of completing this module assignment report is qualitative methods: analysis and assumption. I directly received the information from the annual report and website of Dell Inc. * I also used the theory from the text book of Cost Management – A Strategic Emphasis Sixth Edition by Blocher. Then, I compare the information that Ireceived with the theory that I know from the text book.
1.4 Systemization
The format of our module assignment is as follows: * Chapter I is Introduction which consists of four major sub-chapters: Background, Purpose of Writing, Methodology, and Systemization. * Chapter II is Theories which consist of seven sub-chapters: Competitive Strategies, Balanced Scorecard, Activity Based Costing (ABC), Total Quality Management (TQM), Environmental Accounting, Good Corporate Governance (GCG), and Corporate Social Responsibility (CSR). * Chapter III is Company Profile which consists of four sub-chapters: History,