The Cost of Customer Satisfaction: A Framework for Strategic Cost Management in Service Industries

2007 ◽  
Vol 16 (3) ◽  
pp. 499-530 ◽  
Author(s):  
Antonella Cugini ◽  
Antonella Carù ◽  
Fabrizio Zerbini
Keyword(s):  
Customer Satisfaction ◽  
Cost Management ◽  
Service Industries ◽  
Strategic Cost Management ◽  
The Cost

Strategic Cost Management in the Supply Chain

2020 ◽  
Author(s):  
Lisa M. Ellram ◽  
Wendy L. Tate
Keyword(s):  
Supply Chain ◽  
Cost Reduction ◽  
Return On Investment ◽  
Cost Management ◽  
Strategic Cost Management ◽  
Supply Chain Finance ◽  
Supply Chain Costs ◽  
Definition Of ◽  
The Cost

Companies increasingly face challenging economic times, where it is not uncommon to see revenues decline or remain stagnant. This can strain business viability and reduce the return on investment for shareholders. To increase the return on investment and favorably impact profitability, organizations focus on cost reduction efforts. Cost management should be both holistic and purposeful, while taking a supply chain perspective. This is often not the case because the cost reduction efforts tend to be internal and short-term focused and do not consider the supply chain implications of decisions. Strategic cost management takes a supply chain perspective and includes several tools that can help facilitate cost management. This chapter provides a definition of strategic cost management with supporting examples. It also discusses some tools, including total cost of ownership, target costing, and supply chain finance, that can be used to holistically and strategically manage supply chain costs. The chapter closes with a discussion around the growing role of supply chain finance in cost management.

Developing a Framework to Study the Impact of Contingent Factors on Business Performance Using Strategic Cost Management

2021 ◽  
pp. 227-253
Author(s):  
Tanvi Verma ◽  
Rashmi Aggarwal
Keyword(s):  
Systematic Review ◽  
Business Performance ◽  
Contingency Theory ◽  
Cost Management ◽  
Management Accounting ◽  
Service Industries ◽  
Research Papers ◽  
Systematic Analysis ◽  
Strategic Cost Management ◽  
The Impact

In the present scenario, cost and management accounting techniques have proved their effectiveness in decision making as they provide value creation. Therefore, the need for transforming traditional cost and management accounting to strategic cost management has been recognized. Manufacturing or service industries continuously seek to achieve business performance with the help of strategic cost management using contingency theory. This chapter provides a semi-systematic review of the articles and research papers examining major themes found in the literature focusing on the impact of various factors that are contingent in nature on the business performance through usage of strategic cost management. Systematic analysis of literature identified numerous relevant articles and research papers in eminent journals. The results indicated that there exists an interrelationship among variables, and the finding supports the central proposition of contingency theory where business performance increases with the usage of strategic cost management and contingent factors.

scholarly journals A Typology of Cost Accounting Practices Based on Activity-Based Costing – A Strategic Cost Management Approach

2019 ◽  
Vol 14 (2) ◽  
pp. 161-184
Author(s):  
Gregory Wegmann ◽  
Keyword(s):  
Cost Management ◽  
Cost Accounting ◽  
Management Approach ◽  
Activity Based Costing ◽  
Management Activity ◽  
Professional Literature ◽  
Accounting Systems ◽  
Strategic Objectives ◽  
Strategic Cost Management ◽  
The Cost

This article examines cost accounting methods containing one or more activity-based costing (ABC) like dimensions. The objective is to analyze cost accounting proposals with, in part, a philosophy reminiscent ABC. The research purposes are to analyze the strategic dimension of the methods described and to build a typology useful for managers. The discussion leads to a four-dimensional typology based on three strategic objectives assigned to the cost accounting systems. The foundation of the research is the Strategic Cost Management Theory from which emerges the ABC philosophy. The methodology applied is an academic and professional literature review. The typology designed shows common points and similarities of the methods observed and their strategic dimensions. Some of the methods studied are more or less useful for practitioners, according to the situation of their companies. Keywords: strategic cost management, activity-based costing, typology

scholarly journals ANALYSIS OF STRATEGIC COST MANAGEMENT ASSISTING IN DECISION MAKING

2020 ◽  
Vol 8 (6) ◽  
pp. 481-501
Author(s):  
Yuri Barroso ◽  
Armando Souza Junior
Keyword(s):  
Service Provider ◽  
Quantitative Research ◽  
Cost Management ◽  
Research Strategy ◽  
Third Party ◽  
Sanitation Services ◽  
Strategic Cost Management ◽  
Tax Legislation ◽  
Managerial Decisions ◽  
The Cost

This work presents a study on the cost formation process of a third-party service provider from the Federal Public Administration to draw a parallel with the strategic cost management using the absorption and variable costing methods. As a methodology, a qualitative-quantitative research strategy, of an applied nature, was used, through a case study in a company that provides cleaning, conservation, and sanitation services. Data on 13 types of inputs (the highest values) were analyzed over six months. The values were highlighted referring to the input data of the Bidding Notice that led to the contracting of the service provider company, the inputs consumed by the client, and the inputs purchased by the company. The results of the study indicate that the company bought twice as much (119%) than the amount foreseen in the notice on the analyzed period. Using the precepts of Strategic Cost Management, in parallel with the absorption and variable costing methods, it can be observed that in terms of making managerial decisions, the second (variable costing) forwards more critical information to the manager than the first ( absorption costing), resulting from the concern of complying with Brazilian tax legislation, without considering the inherent tax costs (not only) in the operational structure of the type of service object in this study.

scholarly journals Implementation of strategic cost management in manufacturing companies: overcoming costs stickiness and increasing corporate sustainability

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
Mohammad Mahdi Rounaghi ◽  
Hajer Jarrar ◽  
Leo-Paul Dana
Keyword(s):  
Cost Management ◽  
Corporate Sustainability ◽  
Accurate Determination ◽  
Global Market ◽  
Management Approach ◽  
Accounting System ◽  
Manufacturing Companies ◽  
Strategic Cost Management ◽  
The Cost

AbstractIn today's competitive world, three factors: price, quality and time have critical roles in the success of the companies to achieve success in the competition. For this purpose, the companies have to also adapt themselves to changes in technology and environment. Strategic cost management is the best way to improve the sustainable management models in the manufacturing companies. Strategic cost management has solved many of the problems and shortcomings of traditional accounting system and by accurate determination of costs, their proper allocation to products and elimination of waste, tries to create value for shareholders by using continuous improvement. The objective of this paper was to develop a management model called strategic cost management that reduced costs stickiness and increased corporate sustainability. Using strategic cost management approach can create competitive advantage for the companies, because it provides accurate cost price information so that the users can easily understand the information. The aim of the paper by introducing strategic cost management was to contribute toward accurate pricing, which could result in the increased profitability and competitiveness of the manufacturing companies in a highly competitive global market and at a market‐based price. Also, due to the growing competition among companies in providing high quality products with reasonable prices, a precise system of measurement of the cost of the product is necessary.

Planning for Reuse. Developing a Strategy for the Northern Territory, Australia

1991 ◽  
Vol 24 (9) ◽  
pp. 31-43 ◽  
Author(s):  
M. D. Burgess
Keyword(s):  
Potable Water ◽  
Cost Management ◽  
Sewage Treatment ◽  
Northern Territory ◽  
Sewage Effluent ◽  
Cost Benefits ◽  
Management Procedures ◽  
Marketing Activities ◽  
Harsh Climate ◽  
The Cost

A harsh climate, extended dry periods and relatively expensive water resources underly the potential for effluent reuse in the Northern Territory, Australia. The cost of supplying potable water and the potential offsetting effects of utilising sewage effluent are reviewed. The need to firmly establish the true cost to the community of different supply options is identified. Major cost benefits accrue where reuse will enable deferment of either significant potable source augmentation or sewage treatment works upgrading and where horticultural prospects are good at a reuse site close to the treatment works. An overall strategy plan for increasing the potential of reuse is described. This plan includes firm cost management procedures, marketing activities, appropriate land planning measures and a commitment to research and development.

Research on Project Cost Management Model of Ecological Construction

2011 ◽  
Vol 480-481 ◽  
pp. 1197-1200
Author(s):  
Feng Liu ◽  
Jun Min Wang
Keyword(s):  
Project Management ◽  
Energy Consumption ◽  
Construction Projects ◽  
Cost Management ◽  
Building Energy ◽  
Management Model ◽  
Building Energy Consumption ◽  
Specific Cost ◽  
The Cost ◽  
Ecological Construction

In recent years, in order to reduce building energy consumption in China, and vigorously promote the development of ecological construction, the paper studies disadvantages of the cost of traditional project management applications in the ecological construction projects, exploring specific cost management adapt to the ecological construction project.

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