Basic Concepts in Strategic Cost Management

It is a set of policies, procedures and approaches to business that produce long-term success.

• Regulation

• Strategy

• Plan

• Objectives

These involves setting of goals for the firm, evaluating the various ways to meet the goals and picking out what appears to be the best way to meet the goals

• Tactics

• Directing

• Communicating

• Planning

It is a technique in which management develops policies and practices to ensure that the firm's products and services exceed customer's expectations.

• Customer Service

• Total Quality Management

• Just-In-Time

• Benchmarking

It is a process by which a firm studies the best practices of other firms

• Benchmarking

• Reengineering

• Lean Management

• Cost Leadership

This is a business model that attracts many investors to pursue the use of Internet in conducting business.

• eBay

• Lazada

• E-Commerce

• Shopee

This involves and requires a relatively large investment in computers, computer programming, machines, and equipment

• Flexible manufacturing system

• Computer-aided manufacturing

• Computer-aided design

• Automation

It is a financial plan of the resources needed to carry out tasks and meet financial goals.

• Budget

• Financial management

• Auditing

• Forecasting

It is also known as the "Lean Production"

• Total Quality Management

• Just-in-Time

• Balanced Scorecard

• Value Chain