CHAPTER EIGHTResource and Cost Management

THIS CHAPTER CONCLUDES THE description of VBM's three Rs of risk, results, and resources in Part Four. It is an introductory chapter to cost management. It describes the utility and benefits from cost management in government using progressive management accounting practices and methods to manage costs.

The preface mentioned that VBM's three Rs are balanced. Part Five, Chapters 9 to 14, involving cost management, will give an impression they are imbalanced. This is because author Gary Cokins has substantial experience with management accounting methods and practices, including writing several books and many articles on this subject.

The extensive length of Part Five is a deep dive into management accounting in government. It is intended to educate practitioners (including consultants) with the “how,” not just the “why,” to design and implement progressive management accounting in organizations. If you are not directly involved with the CFO's department, then the authors suggest that perhaps you read only this Chapter 8 and share the entire Part Five (Chapters 9 to 14) with accountants whom you care to influence to implement what is written in this chapter.

Most organizations – particularly in government agencies – need better resource and cost information to take advantage of the VBM framework.


One way to derive a solid understanding of resource spending expenses is through appropriate ...

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