To be a successful and competitory company, director should non concentrate on traditional direction accounting techniques any longer. Because as far more advanced concern environment, traditional direction accounting techniques can non provide proper adequate direction methods for directors to better company. Based on this phenomenon, many modern-day direction accounting techniques are created to work out these jobs. In this assignment, two modern-day direction accounting techniques will be discussed, which are value concatenation and life rhythm bing. We will specify the construct of these two techniques in Part One. In portion two, comparing with traditional direction techniques, we will analyze cost advantage and distinction as illustrations of value concatenation. Additionally, these illustrations are suggested to the directors who do non fulfill with public presentation of the company
Life Cycle Costing
For life rhythm costing ( LCC ) , it is one of accounting and strategic attacks for this fabrication company to help a better public presentation. Life rhythm bing would get down with a entire cost agenda of a peculiar merchandise or service, and so, property to each merchandise ‘s expected life span correspondingly. Goods or services would incorporate a amount of all repeating and non-recurring costs over its ain specific life-span, suggested by Business Dictionary. ( Business Dictionary, 2009 ) Chief executive officer ( CEO ) could finalize a better determination through assorted options provided by this analytical study. It could besides assist this company to track out the most profitable manner in this comparable method.
In using LCC, it is good for the company to acquire the whole set of accounting informations in manus, such as grosss earned and disbursals paid in different watercourses would exactly anticipated. It is of import to acquire these accounting figures in high visibleness because CEO would measure the merchandises ‘ proposals through these appraisals. DEEP undertaking has mentioned that LCC could demo a item cost agenda to vouch a sagely usage of money. ( ICLEI, 2006 ) Strictly talking, important determinations are hinged on the footing of the distribution of fabrication costs and merchandises ‘ life-span.
The 2nd advantage of using LCC technique as it allows the whole fabrication procedure of bring forthing a merchandise to be improved bit-by-bit. The full cost from start to stop would be written down, CEO could better the merchandise by amending the costs or determination devising in each degree. Take the spending of investing determinations as an illustration, when analyzing the general leger of raising a merchandise, CEO could rearrange this cost into a more effectual manner. Therefore, more net income would be resulted with a more appropriate usage of money. In add-on, LCC would supply a more precise prognosis theoretical account of forthcoming costs for this company to be exercised in the long-run assignments.
There would do a critical impact in future outgo trade to the opinion made in early phases. A higher per centum of the entire cost incurred by a merchandise appeared in early phases of the life rhythm would be emphasised by CEO as it take a higher precedence than other merchandises. This merchandise would develop every bit shortly every bit possible as it would take a higher net income earned by the company.
Decisions related to the disbursals used by the proposal would be executed by some investing determination shapers, merely like CEO and main operation officer ( COO ) . Extra professional experts of measuring and analyzing the whole production procedure of this proposal is needed, they are obligated to guarantee that the undertaking would run smooth without any mistake rise.
The costs of having this proposal is aroused and it would be varied by the transition of clip. For cases, geting costs, runing costs, and disposal costs are the three must-have costs while carry oning the proposal. At the really first of the planning phase, the company would hold to pay for the patent of the merchandise or the cost of bring forthing a merchandise. The 2nd phase is runing the whole fabrication procedure of the merchandise, administrational cost and some general disbursals must be incurred during production procedure. For a proposal, the concluding phase should be reselling the merchandise, replacing the merchandise during the terminal of life would make costs.
When securing the merchandise, some costs would be recognised and distinguished in between either one-off cost or recurrent cost. One-off cost would go a sunk cost after geting the merchandise, execution cost, initial preparation cost and disposal cost are the illustration of one-off cost. Perennial cost is relied on clip which would change over clip. Take care cost as an illustration, as clip base on balls by, the cost of keeping machineries would increase. Operational cost, services charge and mending cost are the illustrations of recurrent costs.
The methodological analysis of LCC contains several simple constructs which are rising prices, discounting and the construction of interrupting down cost.
Inflation is the growing rate of money value which would impact the value of an investing undertaking. The consequence of rising prices would largely be ignored when trying the LCC attack. However, in some point of position, rising prices would be counted into LCC analysis when different rising prices rates of different merchandises were considered. Insistent numeration of rising prices rate should be evaded when ciphering the LCC analysis as it would earnestly act upon the truth of the analysis.
Discounting is a construct of clip penchant, which reflects the client ‘s behavior, client would be more favorable to acquire the goods or service now instead than subsequently. It is besides an effort in comparing the benefit and loss in different periods of clip. Net present value demand to be modified over clip, in order to guarantee an accurate and just premise would ensue. In cut downing the value of the merchandise over clip by price reduction rate, it really decreases the dependableness of the merchandise. When executing the LCC analysis, same price reduction rate among different merchandises should be exercised, and should be varied and amended over clip.
Cost interrupt down construction ( CBS ) is the chief principal of LCC attack. It would alter its content once the determination varies. The aim of LCC is to label down all the relevant costs, so that all the internal costs are listed down clearly with a clear understanding shown. When the cost elements are verifiable with well-structured, the analyzers could compare the informations much easier in each specific countries. Another aim of LCC is to clear up the boundary line of the undertaking for the interest of hedging pretermission and repeat.
Harmonizing to Kafelnikov ( 2001 ) “ success in digital economic system is the execution of an integrated value concatenation that extends across – and beyond – the endeavor. ” value is created as goods move along the perpendicular concatenation. The value concatenation depicts the house as a aggregation of value- making activities. The merchandises pass through the concatenation in order. Each activity in the value concatenation can potentially add to the benefits that the consumers get from the house ‘s merchandise, and each can add to the cost that the house incurs to bring forth and sell the merchandise. In other words, it means the concatenation of activities gives the merchandises more added values.
Value concatenation of economic activity is omnipresent, value concatenation exist non merely in a house, but besides between the houses. It shows that the value concatenation of a company may be utile in placing and understanding important facets to accomplish competitory strengths and nucleus competences in the market place. The competitory of the full value concatenation decide the competitory of the houses.
Value concatenation has been used as a powerful analysis tool for organisational strategic planning. What activities the house undertook has the straight links with the competitory advantage. In order to better understand the activities through which a house creates value and competitory advantage by value concatenation, we need to cognize each measure in the value concatenation analysis.
First, it is imperative cognizing what value concatenation can make. Company implement value concatenation as an of import method in their corporate scheme. Break down the whole house ‘s into the cardinal activities under each of the major headers. These activities can be categorizes into “ primary activities ” and “ support activities ” . Porter who was make the value concatenation celebrated distinguished five primary activities- “ Inbound logistics ” , ‘operations ” , “ outbound logistics ” , “ Marketing & A ; Gross saless ” and “ Service ” . These activities are straight related to the processing of the physical goods. Furthermore, the support activities include “ The substructure of the house ” , “ Human Resource Management ” , “ Technology development ” and “ Procurement ” . ( Tutor2u, 2009 ) For value-added, when different phases produce finished that can be valued utilizing market monetary values, the house can gauge the increased value that parts of the value concatenation create. The end of these activities is to offer the client a degree of value that exceeds the cost of the activities, hence ensuing in a net income border. The activities of the value concatenation are interrelated and influenced by each other. For illustration, if spend more cost on buying the stuff, it will cut down the on the job process, faulty goods and working hours. Furthermore, the importance for each activity is decided by what the place it is in the value concatenation.
Second, assess the potency for adding value via cost advantage or distinction. It is a utile tool to assist the house define the nucleus competences and the activities in which it can prosecute a competitory advantage. Once the value concatenation is defined, we need to see how to apportion the cost to each activity. Furthermore, the cardinal point is Active- based costing ( ABC ) . ‘ABC was developed to get the better of the defects of the traditional method. Fabrication can utilize ABC systems to concentrate cost cut downing attempts. ‘ ( Alnoor, Charles, Srikant, George, 2008 ) The houses set cost decrease mark in different sourness country. And the aim of ABC is to make the cost per unit of measured cost driver. It assigns costs to activities and identifies the specific drivers of those costs. In add-on, cost drivers explain why costs vary across houses. The cost of each activity in the house ‘s perpendicular concatenation may be influenced by a different set of cost drivers. ( Besanko, 2007 ) In the value concatenation, there are 10 cost thrusts related to the activities, including “ Economic graduated table ” , “ Learning ” , “ Capacity Utilization ” , “ Linkage among activities ” , “ Interrelationships among concern units ” , “ Degree of perpendicular integrating ” , “ Timing of market entry ” , “ Firm ‘s policy of cost or distinction ” , “ Geographic location and Institutional factors ” . ( NetMBA, 2007 ) For a house, the cost advantages can be pursued by commanding these drivers better than rivals.
The 2nd scheme for deriving competitory advantage is distinction. Harmonizing to the basic points of value concatenation, non all of the activities can make value for the house. Actually, each house needs to construct their ain strategic portion in the value concatenation. These particular activities are the chief power to make the competitory advantages. Therefore, a distinction advantage may be achieved either by altering single value concatenation activity to increase singularity in the concluding merchandise. ‘Porter identified several drivers for the designation, including constabularies and determinations, linkages among activities, timing, location, interrelatednesss, acquisition, integrating, graduated table, institutional factors ‘ . ( NetMBA, 2007 ) Hence, there are several manner for a house to acknowledge their value concatenation to crate uniqueness and though the usage of engineering or some new distribution channel. Nevertheless, distinction frequently leads to high greater costs, these elements besides regard as cost drivers.
As Mr. Ryan ‘s company, he should get down with define the company ‘s value concatenation in order to delegate the cost and assets to be activities, where the cost can be defined as buying input and operation cost, and assets can be defined as fixed and on the job capital. Therefore Mr. Ryan could see whether the plus that invested in single activity is used expeditiously and efficaciously. Harmonizing to three stairss, single activity illustrates the size and growing of cost, the cost behaviour and rivals ‘ distinction, the value concatenation can be divided. In this instance, Mr. Ryan should cut the defined value concatenation into single activity to acquire a diagrammatically or numerically informations foremost in order to do the value concatenation seeable, and so apportion cost and assets which link to each activity straight or indirectly. A plentifulness of factors influence cost behaviour, which are cost drivers. By cut downing the cost of single value activities or by reapportioning the value concatenation, cost advantage can be achieved. There are 10 cost thrusts, economic systems of graduated table, acquisition, capacity use, linkages among activities, interrelatednesss among concern units, degree if perpendicular integrating, clocking of market entry, house ‘s policy of cost or distinction, geographic location and institutional factors. To command these cost drivers good is manner to acquire cost advantage better than rivals. ( Porter, 1985 )
For Mr. Ryan ‘s company, as a larger fabrication, commanding cost drivers can take following methods. Increasing economic graduated table by fabricating line extension, market enlargement or selling activities can take down the cost. So to derive a sensible type of graduated table is of import. Due to larning, mechanisation can take down activity cost through layout betterment, labour efficiency betterment and quality betterment and so on, nevertheless, the initial cost may be high, but cost must be lower over clip. Learning and analysing rivals is another good manner to acquire cost advantage, such as bargain similar merchandise line, utilizing published stuffs or merchandise design and edifice relationships with rivals ‘ providers. To maintain the fluctuation of capacity volume stable and smooth may increase capacity use. Additionally, Mr. Ryan could cut down the cost of underutilization merchandise. He may sell the merchandise to subcontractors or bureau when the production exceeds demand to cover deficits which takes topographic point when the production is lower than demand. For illustration, Canadian Steel Manufacturers, they sell steel to subcontractors and foreign companies, which the capacity exceeds the demand. They ignore the non stable gross revenues by adding capacity for tendency lines demand growing. There are ever some linkages among cost activities. To command the linkages good may better cost place. Mr. Ryan could utilize information system to work with providers to work coordinating linkages, so that value concatenation would be optimized. For illustration, Mr. Ryan could direct the fabrication program to stuffs providers by computing machine in order to allow providers direct stuffs when needed in a proper volume. This may do good usage of clip and avoid underutilized stuffs. Timing is besides a large issue for a company to entry the market. As a first mover to a market, the company may take the best location, lower trade name set up cost, bulk of clients and lower cost of stuffs. As a late mover to a market, the company may be less for labor because the company do non necessitate to use senior work force. Location is an of import determine factor, since it may be influenced by labour rate, transit efficiency, providers and purchasers. Therefore, the location of activity is a relationship with providers and purchasers. Mr. Ryan had better happen an appropriate location for the company in order to derive cost advantage.
However, to place cost drivers is non an easy work. ( Porter 1985 ) A company may command cost advantage in order to be competitory in the specific market. The cost advantage might be favourable long-run purchase monetary value contracts on natural stuffs, low operating expense or lower transportation costs due to geographic near to markets. Better manner to strategically place a company on the advantage of cost is to increase market portion by transforming from lowest cost manufacturer to lowest cost provider of merchandises.
Here is an illustration of commanding cost drivers about Southwest Airlines. Southwest Airlines Company which was founded in 1971 has been the largest air bearer in the United States. Southwest has a structural cost advantage than other companies, which enables the company charge lower menus. Southwest leads all air hoses in the most low air menu for every place and every twenty-four hours. This is a really different factor from other rivals, and besides it is what clients want most. Since clients besides have alternate land transit, so low menus is suited and of import to pull these clients. They can take any transit as they like, but taking plane is more efficiency and non expensive. Another cost the company controls good is fuel cost. Fuel costs are the 2nd largest disbursal for air hoses. As a high competitory industry, it is non a good pick to go through higher fuel cost on to clients by lifting tickets monetary value, if the company wants to last and success. Southwest Company is a victor in this cut downing fuel cost competition with its successful fuel hedge scheme. The company has one stale fuel provider which can offer them good quality fuel with lower monetary value because the sum of fuel they need is immense. Furthermore the company buys future fuel but wages now in order to acquire lower monetary value. By widening the aeroplane ‘s scope, salvaging fuel, take downing engine care costs, Southwest Company may derive more cost advantage. ( Gittell J.H. , McGraw Hill. 2005 ) Furthermore, Labour cost and distribution cost are another two major costs for air hoses. Southwest Company usage flexible work regulations which allow ‘cross-utilization ‘ take topographic point to all employees. To utilize both ‘cross-utilization ‘ scheme and company traditional civilization of cooperation, labour cost can be lower. That is the cost advantage gained by Southwest Company, and it makes a lead in the industry. Another particular thought came out by Southwest Company is to utilize E-ticketing system which allow clients to book and wage for tickets on line with their recognition cards. It can take down distribution cost and labor cost since company does non necessitate to put up retail merchants. ( Terry R. Bacon and David G. Pugh, 2003 )
Except commanding cost drivers, reconfiguring value concatenation is another manner to acquire cost advantage. To accomplish cost advantage, there are two methods. First, reconfiguring value concatenation may make chances to reapportion company ‘s cost in order to do new value concatenation more efficient. A successful illustration is no-frills air hoses reconfigures its value concatenation and establishes a new cost criterion which is every bit much as 50 per centum lower than those of truck transits. Not merely execute the value activities cheaper, but besides seek some linkages. Second, by prefering the company ‘s strength, a permutation value concatenation may take to be advantage. To reconfigure the value concatenation change the of import cost drivers, and lead to favor a company. For case, in the beef processing illustration, Iowa Beef Company regards location cost as its major cost driver. So the company increases its increased graduated table sensitiveness. A company like Iowa Beef Company frequently uses switching to a more sensitive graduated table value concatenation to derive more benefit. To make new value concatenation and do operation scheme otherwise, companies must cognize everything they do precisely and rivals every bit good. They must believe to execute activities otherwise, to reorder value concatenation in a right and sensible manner and to put contract with providers or retail merchants in order to take down the cost. Mr. Ryan may reconfigure value concatenation through some activities as followers: create different fabrication procedure, happen a new stuff and besides a new provider, happen a new distribution channel, and alter the company location to someplace relative to providers and purchasers and do new sale publicity like advertizement. ( Porter 1985 )
Differentiation is one of the two types of competitory advantages a house may possess. If a house differentiate itself from its rivals that can be alone at something that is valuable to purchasers. The extent to which rivals in an industry should particular and different from each other which is an of import component of industry construction. Firms are besides different but non differentiated, because they pursue uniqueness signifiers that purchasers do non value ( Porter, 1985 ) . Then the article wills analysis distinction and distinction scheme.
First, it will depict the beginnings of distinction, which can originate anyplace in a house ‘s value concatenation. Differentiation allows the house to order a premium monetary value, to sell more merchandises at a given monetary value and derive tantamount benefits such as greater purchaser loyal to merchandise during seasonal downswings. If the monetary value premium get exceed added costs of alone, distinction would take to superior public presentation. A house ‘s distinction may beg a wide group of purchasers in an industry. For illustration, Adidas entreaties to purchasers desiring featuring vesture, but purchasers view vesture as excessively simple. Differentiation grows out of the house ‘s value concatenation and any value activity is a possible beginning of singularity. Value concatenation developed for end of strategic cost analysis, hence, may non divide all activities that are of import for distinction. A house may besides distinguish itself through the comprehensiveness of its competitory range.
Differentiation can besides stem from downstream. Firms ‘ channel a powerful beginning of uniqueness and may increase is repute, service, client preparation and any other factors. For illustration, the Coca Cola independent bottlers are important to distinction. Differentiation schemes throughout the value concatenation to seek to make value for the purchaser.
A series of basic drivers determined a house ‘s singularity in value activity. The chief uniqueness drivers are following first is policy picks which influence houses make policy picks about what activities to execute and how execute them. Second one is linkages. Uniqueness frequently stems from linkages within the value concatenation or with supplier and channels that a house utilizes. Third one is clocking, it means uniqueness may ensue from when a house began executing an activity and being the first to follow a merchandise image. Then is location, such as bank, it besides chose the most convenient subdivision and automatic machine locations. Fourth one is interrelatednesss, and so are larning and spillovers, integrating, graduated table and institutional factors. The drivers of uniqueness vary for each activity and may change across industries for the same activity.
Second is cost of distinction. Differentiation is normally dearly-won. Uniqueness requires that it execute value activities better than rivals, so the house must incur costs to be alone. Some signifiers of distinction are clearly more dearly-won than others. Differentiation that consequences from superior coordination of linked value activities may non add much cost. The cost of distinction reflects the cost drivers of the value activities on which based singularity. The relationship between singularity and cost drivers takes two related signifiers which are what makes an activity unique can impact cost drivers and the cost drivers can impact the cost of being alone. In buying distinction, a house frequently affects the cost drivers of an activity adversely and intentionally adds costs. At the same clip as uniqueness frequently raise cost by impacting the cost drivers and the cost drivers find how dearly-won distinction will be ( Porter, 1985 ) . Scale, interrelatednesss, acquisition, and clocking are peculiarly of import cost drivers in impacting the cost of distinction. The cost drivers therefore play an of import function in finding the success of distinction schemes and have of import competitory deductions. Sometimes doing an activity unique besides at the same time lower cost. For illustration, if integrating is a cost driver, integrating may do an activity unique but besides lower cost. Where accomplishing distinction and cut downing cost can take topographic point at the same time, nevertheless, this suggests that a house has non been to the full working all the chances to take down cost ; being unique in an activity was once judged unwanted ; or an of import invention has occurred which rivals have non adopted, such as a new machine-controlled procedure that both lowers cost and better quality. In measuring the distinction cost, a house must compare the cost of being alone with the cost of being equal to rivals in an activity.
Third is differentiation scheme. Differentiation root from unambiguously making purchaser and value and it can ensue through meeting usage or signaling standards, through in its most sustainable signifier it comes from both. There are two paths to distinction which are executing it ‘s exist value activities and heighten its singularity. At the same clip, there are a figure of approached characterize successful discriminators. First is heightening the beginnings of uniqueness which include increase the beginnings of distinction quickly in the value concatenation, Making existent merchandise usage consistent with intended usage, using signals of value to beef up distinction on usage standards and using information bundled with the merchandise to ease both usage and signaling. Second one is doing the cost of distinction and advantage which include working all beginning of distinction that are non closely, distinction minimising cost by commanding cost drivers, peculiarly the cost of signaling, stressing signifiers of distinction where the house has a sustainable cost advantage in distinguishing and cut downing cost in activities that do non impact purchaser value. Third one is altering the regulations to make uniqueness which includes switching the determination shaper to do a house ‘s singularity more valuable, detecting unidentifiable purchase standards and preemptively react to altering purchaser or channel fortunes. Fourth one is reconfiguring the value concatenation to be alone in wholly new ways.
However, there are some booby traps in distinction. First one is uniqueness that is non valuable. The fact that a house is alone at something does non needfully intend it is differentiated. Second one is excessively much distinction, because a house does non understand its activities affect purchaser value or the perceptual experience of value by the mechanisms. Third one is excessively large monetary value premium. The monetary value of premium from distinction is differentiation map of value and its sustainability. If the premium gets excessively high, purchasers abandoned a differentiated rival. Fourth one is disregarding the signal value need which can open a house to assail from a rival supplying inferior value but holding a better purchaser ‘s buying procedure apprehension. Fifth one does non cognize distinction cost. Differentiation will non take to superior public presentation, unless people think it ‘s worth more than its purchase cost. Sixth one is focus on the merchandise alternatively of the whole value concatenation. Some companies merely see the physical status of the merchandise differences, failed to take the chance to separate between other parts of the value concatenation. Last one is failure to acknowledge purchaser sections which means purchasers purchase standards and their ranking normally vary among purchasers, making purchaser sections.
At last, There are some differences to find who is the existent purchaser is the measure to separate between the purchaser ‘s value concatenation and companies for their impact on the purchaser buying standards to find rankings to measure a company ‘s alone value concatenation of bing and possible resources, find the cost of distinction bing and possible resources, Select constellation value creative activity activities of the purchaser ‘s most valuable difference in the comparative cost differences, proving the sustainability of differences in scheme pick, cut down the cost of activities do non impact the chosen signifier of distinction.
Due to the modern-day concern environment is characterized by high competition, increasing overhead costs, increasing demand for utile information by client and market section and demands for information in order to pull off the costs of support sections, traditional costing methods got challenges ( Bahaman, 2008 ) . Traditional cost method assign the accumulate operating expense costs from all the production sections to individual merchandises, allocate and accumulate operating expense costs to production section and it use a volume-based cost driver for illustration entire labour hours. Although traditional costing method is good when overhead are low, ignore non-volume related support activities, set-ups, review activities and material procurance. Traditional system are suited merely if a big proportion of operating expenses are volume-related, but it inappropriate for today because organisations produce a wild scope of merchandises. Furthermore, the traditional costing system is equal when the merchandise assortment is limited, nevertheless, the existent concern market have a wild scope of merchandise assortments. Therefore, we can utilize activity-based cost system ( ABC ) to polish traditional bing systems by ciphering the costs of single activities. In traditional system, it merely calculation the mean cost, for illustration four people go to eat everyone ordered different priced nutrient Queeny $ 33 Mike $ 25 Nick $ 40 Paul $ 20, but if we use traditional cost system to presume divide the measure in four and everyone need to pay 29.5 that means two will pay more and others pay less. So, it ‘s better to utilize ABC to cipher for each single activities like to utilize cost drivers. ABC is system based on activities associating organisational disbursement on resources to the merchandises and services produced and delivered to clients ( Lewis, 1995 ) . ABC ‘s aim is to mensurate and so monetary value out all the resources used for activities that support the production and bringing of merchandises. The ABC costing method besides back up operating expenses make non turn with concern volume and costs respond to complexness. When the merchandises make diverse demands on resources due to differences in volume, procedure stairss, batch size or complexness or merchandises that a company is suited to do and sell show little net income while merchandises for which a company is les suited show big net incomes implementing ABC system is most good ( Bhimani, 2008 ) . Therefore, ABC method has more benefits than traditional method, such as it has better profitableness steps, better information for commanding capacity cost, item and clearly of operating expenses, more accurate and powerful penetrations and better determination and control.
The traditional system and ABC system have three chief differences. First, they use different manner to roll up and redistribute cost. Traditional system usage cost Centre and ABC usage activities. Second, traditional system normally use volume allocates and ABC system asks what activities are being performed the resources of the support section. Last but non the least, traditional system support section disbursals are allocated to a production section and ABC system ‘s resource disbursals are assigned to activities based on how much of the resource is required to execute the activities. In one word, traditional costing methods allocates on the footing of one thrust such as direct labor or machine hours, but it leads to inaccurate and misdirecting costs and under-costing or over-costing merchandises. ABC bing method refines traditional method to makes more bases and utilize more cost drivers usage in any industry in order to do better determination devising and control.
In decision, as we analyses in this study, life rhythm bing and value concatenation can give the house great aid to better their public presentation by diminishing the cost of stock list, doing powerful method for measuring the true cost of different options over the life-time to guarantee that public money is spent most sagely and doing easy judgements. Although these public presentation demand to develop, they already really thankful for assisting the companies to hold good direction accounting public presentation such as doing good and speedy determination, better governable and lessening cost for production and so on. As we found traditional accounting method are already can non confront today ‘s competitions. Therefore, we use this study to propose the company develop accounting direction public presentation in order to suitable for today ‘s concern universe.