Strategic Management and Cost Management Concepts

In: Business and Management

Submitted By MichelA
Words 3143
Pages 13
John Molson School of Business

Strategic Management and Cost Management Concepts

April 8, 2010
Section G

Table of Contents

Introduction 2
1. Overview of Cost Management and Strategy 3
2. Implementing Strategy 5
3. Basic Concepts 10
Conclusion 14
References 15
Appendix I: Product & Period Costs 18
Appendix 2: Balanced Scorecard 19
Companies are constantly trying to improve their business and the quality of their products. While Marketing and Operations Management are two departments that aid in improving a company’s business, the accounting department plays a major role in this transformation as well. Considering the managerial aspect of accounting, a lot of what it takes to improving ones business is cost management and strategy. Strategic and cost management are essential to any business as they provide the foundation for determining problems and improving quality. Strategic and cost management concepts can be broken down into three parts: the overview of strategies that can be used, the ways to implement these strategies and the cost concepts that can be used to manage costs.

1. Overview of Cost Management and Strategy There are several cost and strategic techniques that can be used to improve a company’s overall position. These techniques, however, are within broader topics, such as the business environment, management techniques and competitive strategy. Firstly, a changing business environment has caused the business world to be a lot more competitive than it once was and has forced management to rethink their strategies. Changes in information systems, foreign competition and a “customer-driven” (Kotelnikov, 2001) economy have made strategic management essential to all companies that wish to stay competitive. Information systems have drastically improved from…...

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