Implementation of strategic cost management in manufacturing companies: overcoming costs stickiness and increasing corporate sustainability
Abstract In 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 managem...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
SpringerOpen
2021-09-01
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| Series: | Future Business Journal |
| Subjects: | |
| Online Access: | https://doi.org/10.1186/s43093-021-00079-4 |
| _version_ | 1818365089027194880 |
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| author | Mohammad Mahdi Rounaghi Hajer Jarrar Leo-Paul Dana |
| author_facet | Mohammad Mahdi Rounaghi Hajer Jarrar Leo-Paul Dana |
| author_sort | Mohammad Mahdi Rounaghi |
| collection | DOAJ |
| description | Abstract In 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. |
| first_indexed | 2024-12-13T22:14:43Z |
| format | Article |
| id | doaj.art-d6e789634cf14bc4bd45f24075919fdc |
| institution | Directory Open Access Journal |
| issn | 2314-7210 |
| language | English |
| last_indexed | 2024-12-13T22:14:43Z |
| publishDate | 2021-09-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Future Business Journal |
| spelling | doaj.art-d6e789634cf14bc4bd45f24075919fdc2022-12-21T23:29:38ZengSpringerOpenFuture Business Journal2314-72102021-09-01711810.1186/s43093-021-00079-4Implementation of strategic cost management in manufacturing companies: overcoming costs stickiness and increasing corporate sustainabilityMohammad Mahdi Rounaghi0Hajer Jarrar1Leo-Paul Dana2Independent ResearcherUSEK Business School, Holy Spirit University of KaslikRowe School of Business, Dalhousie UniversityAbstract In 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.https://doi.org/10.1186/s43093-021-00079-4Strategic cost managementManufacturing companiesCost stickinessCorporate sustainabilityContinuous improvement |
| spellingShingle | Mohammad Mahdi Rounaghi Hajer Jarrar Leo-Paul Dana Implementation of strategic cost management in manufacturing companies: overcoming costs stickiness and increasing corporate sustainability Future Business Journal Strategic cost management Manufacturing companies Cost stickiness Corporate sustainability Continuous improvement |
| title | Implementation of strategic cost management in manufacturing companies: overcoming costs stickiness and increasing corporate sustainability |
| title_full | Implementation of strategic cost management in manufacturing companies: overcoming costs stickiness and increasing corporate sustainability |
| title_fullStr | Implementation of strategic cost management in manufacturing companies: overcoming costs stickiness and increasing corporate sustainability |
| title_full_unstemmed | Implementation of strategic cost management in manufacturing companies: overcoming costs stickiness and increasing corporate sustainability |
| title_short | Implementation of strategic cost management in manufacturing companies: overcoming costs stickiness and increasing corporate sustainability |
| title_sort | implementation of strategic cost management in manufacturing companies overcoming costs stickiness and increasing corporate sustainability |
| topic | Strategic cost management Manufacturing companies Cost stickiness Corporate sustainability Continuous improvement |
| url | https://doi.org/10.1186/s43093-021-00079-4 |
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