What Is Resource Based View

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What is Resource Based View of Cost allocation? Resource-based costing involves the allocation of resources to achieve certain objectives. These objectives are then measured against inputs, such as labor, capital, and technology. This enables companies to maximize their Return on Investment (ROI).

Companies, whether big or small, can benefit from ROI maximization. However, business managers have often failed to effectively implement cost allocation programs because of a lack of information and inefficiency in planning. The current global economic downturn has resulted in a drastic reduction in investment spending. Companies therefore find it difficult to increase their operational budgets, let alone expand their operating pipelines.

In response to this dilemma, many organizations have adopted what is called a “cost-oriented” approach. This approach makes use of what is called a “card’s strategy.” Under this strategy, managers issue a series of cards to their subordinates indicating what departments they should concentrate their efforts on. Often, however, this approach has not yielded the desired results.

A more effective method is what is called a “what is a resource based view of costs.” This approach makes use of what is called a “cards strategy” in which managers issue a series of cards to their subordinate managers indicating what departmental activities should be conducted. These activities include those that directly affect the organization’s production and those that indirectly affect the production process. Managers are then required to justify these activities to their subordinates. If they do not comply, they are subject to disciplinary action.

The approach that makes the most sense for what is resource based view of costs is what is known as a cost-benefits analysis. In this approach, the managerial view of what is resource based simply divides the total cost of doing business in half. The “what is” in this case is the cost of doing business. Now, the “benefits” associated with doing business can be measured, and the benefits can be identified. Then, managers can make decisions regarding what actions their organizations need to take to maximize these benefits.

A “what is a resource based view of costs” that is effective in determining what actions to take involves identifying what direct and indirect costs are associated with doing business. Managers then need to be able to identify the relationship between these costs and the direct and indirect benefits of doing business. By so doing, they will be better able to understand what are resource based, and what actions their organizations should take to maximize these benefits. Again, by being able to identify the relationship between these two factors, managers can make better decisions regarding what is resource based.

It should be noted that a “what is a resource based view of costs” that is effective will require that managers be able to identify the factors that lead to increased costs, and what factors result in decreased costs. This is not as easy as it sounds, because the entire concept of what is resource based view of costs is an abstract one. This means that it makes it difficult to conduct controlled experiments testing to see what effect different views have on various aspects of an organization. But it does ensure that what is resource based is at the heart of managers’ understanding of what is resource based. Knowing what is resource based, helps managers make better choices and therefore, optimize their organization’s bottom line.

Finally, what is the resource based view of costs also helps managers to be more efficient. By knowing which costs are unnecessary and which ones are relevant, managers can spend their time and energy on those activities that actually produce results, rather than on activities that are not relevant or that produce results but are time consuming. Maximizing the productive use of human and physical resources thus becomes easier. In a nutshell, what is the resource based view of costs is how managers determine what is necessary and what is irrelevant so that they can maximize the value of all of the human and physical resources of an organization. This also ensures that the organization’s bottom line improves over time.