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Questions and Answers
What is the primary purpose of strategic cost management?
What is the primary purpose of strategic cost management?
Which of the following is NOT a key element of management accounting?
Which of the following is NOT a key element of management accounting?
What is the primary focus of cost management information?
What is the primary focus of cost management information?
Which of the following is NOT a key characteristic of strategic management?
Which of the following is NOT a key characteristic of strategic management?
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Which of the following is the primary role of management accounting?
Which of the following is the primary role of management accounting?
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Which of the following is NOT a key component of cost management information?
Which of the following is NOT a key component of cost management information?
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What is the primary focus of this module?
What is the primary focus of this module?
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Which of the following is NOT one of the objectives listed for this module?
Which of the following is NOT one of the objectives listed for this module?
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According to the overview, what is a critical factor in effective business management?
According to the overview, what is a critical factor in effective business management?
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Which of the following statements is TRUE according to the text?
Which of the following statements is TRUE according to the text?
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What is the role of the cost management accountant, as implied in the text?
What is the role of the cost management accountant, as implied in the text?
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Which of the following topics is NOT covered in this module?
Which of the following topics is NOT covered in this module?
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What is the focus of strategic cost management?
What is the focus of strategic cost management?
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Which of the following is NOT a financial performance measure used to assess a firm's strategic success?
Which of the following is NOT a financial performance measure used to assess a firm's strategic success?
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Which of the following is a non-financial measure of a firm's operational success?
Which of the following is a non-financial measure of a firm's operational success?
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What is the purpose of the balanced scorecard technique?
What is the purpose of the balanced scorecard technique?
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How does the new business environment impact firms?
How does the new business environment impact firms?
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What is the focus on in the new business environment?
What is the focus on in the new business environment?
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Study Notes
Introduction to Strategic Cost Management
- Cost management information is a critical factor in the effective management of a firm in today's business environment.
- Business managers must think and act competitively, and this requires strategy.
- The role of cost management accountants is to support successful business endeavors.
Objectives of Strategic Cost Management
- Describe the nature and development of cost management information.
- Identify various users of cost management information.
- Explain how cost management information is used in management functions.
- Describe the professional environment of cost management.
- Discuss recent changes in the contemporary business environment.
- Understand and describe contemporary cost management techniques.
Overview of Cost Management and Strategy
- Strategy involves a set of policies, procedures, and approaches to achieve long-term success.
- Strategic management involves developing a sustainable competitive position.
- Strategic cost management involves developing cost management information to facilitate strategic management.
Cost Management Information
- Cost management information includes both financial and non-financial information.
- Financial information includes data on costs and revenues.
- Non-financial information includes data on productivity, quality, and other key success factors.
Management Accounting
- Management accounting involves applying techniques and concepts to economic data to assist management in planning and decision-making.
- It includes identifying, measuring, accumulating, analyzing, preparing, interpreting, and communicating financial information.
Changes in the Business Environment
- The new business environment requires firms to be flexible and adaptable.
- There is a focus on social and ethical responsibility.
- Firms need to place greater responsibility in the hands of a more highly skilled workforce.
Developing a Competitive Strategy
- Strategic cost management focuses on supporting strategic goals.
- The strategic cost management system develops strategic information, including financial and non-financial information.
- Financial performance measures include growth in sales and earnings, cash flows, and stock price.
- Non-financial measures of operation include market share, product quality, customer satisfaction, and growth opportunities.
- These measures are incorporated in the balanced scorecard technique.
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Description
Test your knowledge on strategic cost management with this quiz. Topics covered include introduction to strategic cost, cost reference, and cost accounting.
