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

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.

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

Asia-Pacific Management Accounting Journal ◽

10.24191/apmaj.v14i2-08 ◽

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

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ANALISIS PERHITUNGAN HARGA POKOK PRODUKSI DAN PENENTUAN HARGA JUAL ATAS PRODUK (Studi Kasus Pada PT Dasa Windu Agung)

Jurnal Riset Manajemen dan Bisnis (JRMB) Fakultas Ekonomi UNIAT ◽

10.36226/jrmb.v1i2.23 ◽

2016 ◽

Vol 1 (2) ◽

pp. 183-190

Author(s):

Dwi Urip Wardoyo

Keyword(s):

Manufacturing Industry ◽

Sampling Method ◽

Manufacturing Companies ◽

Test Analysis ◽

Automotive Components ◽

Convenience Sampling ◽

Cost Of Production ◽

The Cost ◽

Keywords Cost

This study aims to determine the determination of the cost of production for products produced by PT. DWA. The Company is engaged in the manufacturing industry specialized in automotive components. Its activity is carried out through a series of production processes, so that expenses spent in the production will be calculated into the cost of the production sold. The population in this study were all manufacturing companies in Jakarta. Convenience sampling method selected one of the companies that get the confidence to assemble three national car project in Indonesia, namely Timor, Bakrie and Maleo. Test analysis used in this study is to test the calculation of full costing with job order costing. This study shows that (a) determination of the cost elements associated with the cost of production and (b) determining the cost of production on a product-based job costing with full costing approach. Keywords: cost of production, full costing

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INDUSTRIAL WESTE ACCOUNTING ON EXAMPLE ASH DUMPS

EKONOMIKA I UPRAVLENIE: PROBLEMY, RESHENIYA ◽

10.36871/ek.up.p.r.2021.04.04.033 ◽

2021 ◽

Vol 4 (4) ◽

pp. 182-188

Author(s):

T. S. BUDINA ◽

◽

N. Kh. KURBANOV ◽

L. M. PROKOFIEVA ◽

V. G. SHIYKO ◽

...

Keyword(s):

Production Efficiency ◽

Raw Materials ◽

Accurate Determination ◽

Accounting System ◽

Secondary Material ◽

Ash And Slag Waste ◽

Sufficient Degree ◽

Slag Waste ◽

Financial Result

The article is devoted to the problems of accounting for industrial waste (technogenic deposits) on the example of ash and slag dumps. The influence of the organization of accounting for technogenic deposits on the indicators of cost, profit, and profitability of the enterprise, if these wastes are sold or used as secondary material, is studied. It is proved that the accounting system should accumulate and form such information that would allow with a sufficient degree of accuracy to determine the economic efficiency of the integrated use of raw materials, would aim at identifying reserves for increasing production efficiency. According to the authors, accounting under IFRS provides a more accurate assessment of ash and slag waste, which ultimately will allow the most accurate determination of the financial result from their further use.

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THE EFFECT OF INTERNAL COST MANAGEMENT, INTEGRATION OF EXTERNAL AND INTERNAL INFORMATION SYSTEMS, AND FIBER CAPACITY ON INTER-ORGANIZATIONAL COST MANAGEMENT IN SUPPLY CHAINS (Empirical Studies in Manufacturing Companies in The Province of Banten)

Jurnal Riset Akuntansi Tirtayasa ◽

10.48181/jratirtayasa.v5i1.8444 ◽

2020 ◽

Vol 5 (1) ◽

pp. 89-97

Author(s):

Gugun Gunawan

Keyword(s):

Supply Chains ◽

Absorptive Capacity ◽

Structural Equation ◽

Cost Management ◽

Theory And Practice ◽

Equation Modeling ◽

Management Approach ◽

Manufacturing Companies ◽

Electronic Integration ◽

Organizational Costs

Inter-organizational cost management is a strategic cost management approach to managing costs that span organizational boundaries in supply chains. Drawing on the resourcebased view of the firm, we develop a model to predict which inter-related resources might enable companies to manage inter-organizational costs. We test this model using a survey of managerial accountants whose organizations are part of a supply chain. Using structural equation modeling, we conclude that the resources of internal electronic integration, external electronic integration, internal cost management, and absorptive capacity play significant direct and indirect roles in the development of an inter-organizational cost management (IOCM) resource. We find that these resources are inter-related and together are useful in enabling companies to ultimately benefit from managing inter-organizational costs. We find in particular the importance of relational resources associated with absorptive capacity in the development of an IOCM resource. Our research contributes to theory and practice by explaining how specific resources can be combined in allowing companies to better manage inter-organizational costs. Data were analyzed using SEM with the aid SmartPLS software version 3.0

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Cost management in agribusiness organizations

Buhuchet v sel'skom hozjajstve (Accounting in Agriculture) ◽

10.33920/sel-11-2110-03 ◽

2021 ◽

pp. 24-34

Author(s):

S. A. Tunin ◽

A.V. Frolov

Keyword(s):

Management System ◽

Cost Management ◽

Industrial Complex ◽

Accounting System ◽

Effective Cost ◽

Modern Economic ◽

The Subject ◽

Cost Management System ◽

Agricultural Organizations ◽

The Cost

The article presents the results of the development and testing of cost management methods in agricultural organizations. The purpose of the activity of any organization that has set itself the task of extracting profit is its growth and increasing the efficiency of its activities. As a rule, all organizations strive to maximize their profits while minimizing the costs incurred. In modern economic conditions, such an approach is possible only with a properly constructed effective cost management system. Rational use of available resources by organizations of the agro-industrial complex with proper cost management will allow organizations to be competitive in the market and carry out their activities in the foreseeable future. The subject of the study is the cost management accounting system, the object of the organization of the agro-industrial complex of the Stavropol Territory. The information base was the forms of specialized reporting of agricultural organizations of the Stavropol Territory. The scientific novelty of the research consists in the development of a methodology for the cost management system in the agro-industrial complex organizations of the Stavropol Territory.

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Strategic Cost Management in the Supply Chain

The Oxford Handbook of Supply Chain Management ◽

10.1093/oxfordhb/9780190066727.013.7 ◽

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.

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Determining Girard Form Class in Central Hardwoods

Northern Journal of Applied Forestry ◽

10.1093/njaf/14.4.202 ◽

1997 ◽

Vol 14 (4) ◽

pp. 202-206 ◽

Cited By ~ 1

Author(s):

John C. Rennie ◽

Jack D. Leake

Keyword(s):

Direct Measurement ◽

Accurate Determination ◽

Tree Form ◽

Form Class ◽

Wide Range ◽

Close Proximity ◽

Wedge Prism ◽

The Cost ◽

Volume Estimates

Abstract Girard form class is widely used to describe tree form. Tree volume estimates change about 3% per unit change of Girard form class (Mesavage and Girard 1946). Hardwoods growing in close proximity have been observed to have a wide range in Girard form class. Accurate determination of Girard form class can therefore be important in getting accurate estimates of hardwood timber volume. However, the cost of estimating Girard form class for every tree being measured in the stand would be prohibitively expensive. Thus, estimation of average Girard form class for a stand is considered here. Three instruments used to estimate Girard form class—a Wheeler pentaprism optical caliper, a wedge prism, and a Spiegel relaskop—were compared to direct measurement. Number of sample trees to achieve desired half-widths of the confidence interval of ±1 and ±1 1/2 units of Girard form class was calculated for each method. Direct measurement requires the fewest trees to achieve the desired results. However, it requires considerably more time per tree than any of the instruments tested. The Wheeler pentaprism requires only a few more trees than direct measurement, and considerably fewer trees than either the wedge prism or the Spiegel relaskop. Use of all three instruments is hindered when understory vegetation obscures the top of the first log. North. J. Appl. For. 14(4):202-206.

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