Strategic Cost Management (Second Edition)

Author: Wang Bin
Publisher:
Publish Date: 2005-01-01
Features: A key aspect of cost management is being centered on strategy. Strategy refers to the long-term plans a company formulates to win in competition. Every company or organization must possess some competitive advantage. Some companies' competitive advantages may be low cost, while others may be high quality or unique products. In such a competitive era, mediocre companies find it difficult to win, whereas every company must develop 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. This book aims to help readers 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, this one teaches management knowledge, teaching relevant individuals how to apply accounting and cost management knowledge to make better decisions and improve company performance. Every chapter and question in this book contains deeper questions: How do companies compete? What type of cost management information do companies therefore need? It helps you not only master the application of each cost management method but also understand why, when, and how to use these methods. 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 you 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 key aspect of cost management is being centered on strategy. The strategy we refer to is the long-term plan a company formulates to win in competition. Every company or organization must possess some competitive advantage. Some companies' competitive advantages may be low cost, while others may be high quality or unique products. We have all realized that in such a competitive era, mediocre companies find it difficult to win, whereas every company must develop 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 question in this book contains deeper questions: How do companies compete? What type of cost management information do companies 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, correctly understanding the practical issues and methods of cost management is essential—we believe you agree with this as well.