I need a tool or a technique of Strategic Cost Management that I can measure in my research paper by a method other than a questionnaire, which means I want to be able to measure that tool by obtaining the data from the company's financial statements.
Strategic Cost Management is a critical aspect of effective business management, aimed at reducing costs and increasing profitability through strategic decision-making. In an accounting research paper, the tool of Activity-Based Costing (ABC) can be utilized to measure and analyze costs more accurately. ABC assigns overhead costs based on activities that drive those costs, providing a better understanding of the true cost drivers within an organization. By measuring and analyzing costs through ABC, businesses can identify non-value-added activities, improve resource allocation, and ultimately enhance overall cost efficiency. Furthermore, ABC allows for more precise cost information that can inform strategic decision-making and aid in setting prices that reflect the true cost structure of products or services. Overall, incorporating tools like ABC in strategic cost management practices can lead to improved financial performance and sustainable competitive advantage.