Linking strategy to actions: Beyond costing.From cost accounting to management control.Introducing the linkages between strategy and costing.Moataz Elmassri, Senior International Finance Consultant, EuroMaTech.
It tries to facilitate the practitioners to apply a coherent link between costs, strategy, competitive advantage and performance evaluation, throughout performing a relevant and appropriate costs analysis process, said Dr. Overall recognition of the cost relationships among the activities in the value chain, and the process of managing those cost relationships to the attainment of organisation’s strategic objectives are the main focal point of exploring cost analysis.Īccordingly, EuroMaTech introduces this course to provide a basic guideline to those organisations who plan to undergo cost analysis as a part of strategic analysis. It is the managerial use of cost information explicitly directed at one or more of the four stages (strategy formulation, communicating the strategy, implementing and controlling) of strategic management. Leading training providers, EuroMaTech are conducting a course on ‘ Cost Analysis to Support Strategic Decisions’, in Dubai this week, which deals with these aspects.Īdopting an appropriate analysis of costs gives a clear understanding of the organisation's cost structure in search for sustainable competitive advantage through cost reduction. Cost data is used to develop superior strategies in route to gaining sustainable competitive advantage. It is the analysis of cost in a broader context, where the strategic elements become more conscious, explicit and formal. The cost analysis process would help managers to understand and implement the strategy, diagnose the performance and influence behaviour and decisions. By focusing on basic costs concepts, analyses, uses, and procedures, instead of procedures alone, we recognize cost analysis as a managerial tool for business strategy.
Understanding the organisation’s cost structure provides key data to managers for planning and controlling, as well as costing products, services, even customers.
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