The strategic cost management (SCM) is a fundamentally new way of managing an organization. It comprises: (a) A strategic analysis of the business to identify unprofitable products, customers, marketing and distribution channels, etc. (b) An evaluation of the business from a value chain perspective. Linkages, both internally and externally, are taken into consideration. (c) The optimization of business processes and [...]
In this article we will discuss about Strategic Cost Management:- 1. Meaning of Strategic Cost Management 2. Importance of Strategic Cost Management 3. Advantages. Meaning of Strategic Cost Management: In global competitive environment, the most efficient firms view all of their spending as an investment. They make efficient spending decisions based on a strategic vision and their internal capabilities to [...]
The following points highlight the top twelve techniques involved in strategic cost management. The techniques are: 1. Activity Based Costing (ABC) 2. Target Costing (TC) 3. Total Quality Management (TQM) 4. Benchmarking 5. Business Process Reengineering (BPR) 6. JIT Inventory Control System 7. Balanced Score Card 8. Kaizan Costing 9. Six Sigma 10. Life Cycle Costing (LCC) 11. Theory of [...]