THE USE OF VALUE STREAM IN COST MEASUREMENT IN PRODUCTION ENVIRONMENT ORIENTED BY CUSTOMER

Abstract

The increasing diversity of customer demand and global competition has prompted organizations to make structural and procedural changes in their activities, and adopt modern production patterns that focus on the diverse needs of customers by building value streams in the organization aimed at responding to customer desires as an alternative to traditional manufacturing methods.

 As a result , the traditional cost accounting methods are no fit with  the idea of customer  value orientation , and the value stream cost method is began to take its place as an alternative in supporting  management to provide the necessary value information and flow paths within the organization.

The research aims to determine the effects of technical changes and the adoption of the concept of value paths in business organizations to identify appropriate methods of traditional costs.

Discussing the possibility of using the cost path method assumes that the use of this method can provide appropriate information for value management in the client-oriented production environment and address deficiencies in the methods of identifying and controlling traditional costs