Steps in strategic cost analysis, Managerial Accounting

Assignment Help:

Steps in Strategic Cost Analysis

1) Recognize the suitable value chain and allocate costs and assets to it.

2) Identify the cost drivers of each value activity and how they interrelate

3) Recognize competitor value chains, and establish the relative cost of competitors and sources of cost differences.

4) Build up a strategy to lower relative cost position via controlling cost drivers or reconfiguring the value chain and/or downstream value.

5) Make sure that cost reduction efforts do not erode differentiation, or made a conscious choice to do so.

6) Test the cost decrease strategy for sustainability.

7) The three major elements of strategic cost management comprise:

  • Value chain analysis
  • Strategic positioning
  • Cost driver analysis

Related Discussions:- Steps in strategic cost analysis

Explian national income and economic welfare, Question 1: (a) Discuss t...

Question 1: (a) Discuss the main features and problems which Mauritius has to face as a small island developing country. (b) What are the factors which have led to the f

Kinematic pair-kinematic element-resistant body , Kinematic Pair: A pair ...

Kinematic Pair: A pair is a joint of two elements which permits relative motion. The relative motion among the elements of links that built a pair is needed to be fully constrain

What is incremental budgeting, Incremental budgeting Incremental budget...

Incremental budgeting Incremental budgeting uses a budget prepared using a last period budget or actual performance as a base with incremental amount asses for the new budget p

C-v-p analysis under uncertainty, C-V-P ANALYSIS UNDER UNCERTAINTY A ma...

C-V-P ANALYSIS UNDER UNCERTAINTY A major limitation of the basic C.V.P analysis is the assumption that the unit variable cost, selling price and the fixed costs are constant an

Describe financial budgets, Describe Financial budgets Financial budget...

Describe Financial budgets Financial budgets: financial budgets are concerned with cash receipts and disbursements working capital expenditure financial position and business o

Explain the various stages of product life cycle, Various stages of product...

Various stages of product life cycle Typically the life cycle of a manufactured product will consist of the following stages: 1) market research : before any investment in

Quantitative or qualitative measures, Review the options and views availabl...

Review the options and views available to answer the following questions: 1. What sort of information is being provided by the dashboard? What visual objects are used?     Wh

What is management accounting, Question 1 The following items are found in...

Question 1 The following items are found in the trial balance of M/s Sharada Enterprise on 31st December, 2000. Sundry Debtors

Attributes of good information, Attributes of good information 1) Informa...

Attributes of good information 1) Information is anything that is communicated and is sometimes said to be processed data. It is data processed in such a way as to be of meaning

Dynamic programming, Dynamic programming It is an extension which finds...

Dynamic programming It is an extension which finds solutions to problems involving a number of decisions which have to be made sequentially. For example, the amount of a produc

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd