Strategic Cost Management Practices

Strategic Cost Management Practices

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In a dynamic and competitive economic environment any business activity needs an integrative approach to organize a set of specialists from different departments into cross-functional teams that all strive for a certain goal such as cost, quality, and lead time, forming an integrated planning and execution system. Traditional cost approaches are no longer adequate, strategic cost management understands what causes costs to occur, through cost driver analysis and value chain analysis. The knowledge derived from this process can lead to revenue enhancement, cost reduction and increased productiv...