Measure Strategic Cost Based on Activity-Based Costing Method

Ming-ming Wang and Dong-ping Han
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Ming-ming Wang: Harbin Institute of Technology
Dong-ping Han: Harbin Institute of Technology

Chapter Chapter 33 in The 19th International Conference on Industrial Engineering and Engineering Management, 2013, pp 303-311 from Springer

Abstract: Abstract In present, within this highly competitive environment, cost management has become a critical survival skill for many firms. These firms integrate the cost factor into the establishment of a long-term and external competitive advantage, and this phenomenon suggests the need to reposition the management of cost as a strategic method instead of simply cutting costs. Strategic cost measurement is an important factor of strategic cost management, which, to a large extent, has been ignored in previous academic discussion. The purpose of this paper is to describe the measurement of strategic cost management. And this paper consists of two main parts: analyzes the continents of strategic costs based on ABC, and then identifies a way to measure the strategic cost accurately. The additional third part is a supplementary discussion: how to make the measurement work and how to use the information to assist strategic decision-makers, followed by a short further discussion.

Keywords: Strategic cost management; Cost driver; Strategic cost measurement; Strategic management evaluation (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-642-38433-2_33

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DOI: 10.1007/978-3-642-38433-2_33

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