Strategic Cost Management: 2nd Edition

Author: (USA) Bloch / (USA) Chen / (USA) Lin / Wang Bin, etc.
Publisher:
Publish Date: 2005-01-01
Features: The evolution of cost management requires contemporary teaching materials to connect the learned basic accounting methods with the overall needs of the enterprise. The special purpose of writing this book is to help readers achieve:
· Understand how a business or organization selects its competitive strategy, including the identification and measurement of key success factors.
· Learn cost management methods and practices, and understand how they help businesses gain and maintain competitive advantages to achieve long-term success.
· Correctly understand and appropriately apply various cost management methods in the four management functions: strategic management, planning and decision-making, financial reporting preparation, and management control and operational control.
· Understand the role of cost management in the application of today's ten management methods in enterprises. These ten methods are: Total Quality Management (TQM), Benchmarking, Continuous Improvement, Activity-Based Management (ABM), Business Process Reengineering (BPR), Theory of Constraints (TOC), Mass Customization, Target Costing, Life Cycle Costing, and Balanced Scorecard.
The purpose of this book is to help you better understand the role of management and cost management in the success of businesses and organizations. Unlike other books that attempt to teach accounting knowledge, we hope to teach you some management knowledge, teaching you how to apply accounting and cost management knowledge to make better decisions and improve company performance.
A significant aspect of cost management is its strategic focus. The strategy we refer to is the long-term plan that a company formulates to win in competition. Every company or organization must have some competitive advantage. Some companies' competitive advantages may be low cost, while others may be high quality or unique products. We have realized that in this competitive era, mediocre companies find it difficult to win, whereas every company must formulate a strategy that makes it stand out and attracts customers. Why is strategy so important in cost management? Because in the field of accounting and other areas of management, companies focus more on adding value for customers or shareholders—cost management can help organizations add value.
Every chapter and every question in this book contains deeper questions: How does a company compete? What type of cost management information does the company therefore need? We hope you not only master the application of each cost management method but also understand why, when, and how to use these methods. We believe that for every excellent manager, a proper understanding of cost management practices and methods is essential—and we hope you agree with this as well.