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Strategic Cost Management

Strategic cost management is an important part of business plans that is crucial for growth and maintaining growth. It allows companies to employ strategic resources, make important business decisions, examine strategic resources, and locate important resources. The primary aims of strategic cost management are to ensure business success and sustained growth. A lack of strategic cost management can lead to bankruptcy, as seen in some auto parts companies. Proper usage of resources is an important part of strategic cost management, and companies that use resources cost-effectively are able to implement strategic cost management plans that maintain economic stability and support growth.

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Rahul Kadam
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43 views

Strategic Cost Management

Strategic cost management is an important part of business plans that is crucial for growth and maintaining growth. It allows companies to employ strategic resources, make important business decisions, examine strategic resources, and locate important resources. The primary aims of strategic cost management are to ensure business success and sustained growth. A lack of strategic cost management can lead to bankruptcy, as seen in some auto parts companies. Proper usage of resources is an important part of strategic cost management, and companies that use resources cost-effectively are able to implement strategic cost management plans that maintain economic stability and support growth.

Uploaded by

Rahul Kadam
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Strategic Cost Management Strategic cost management is an important part of the business plans of all business entities at present,

as they are extremely crucial for growth as well as retaining the rate of growth. In the wake of the economic instability in some prominent business organizations around the world this process has gained in importance. Use and Importance of Strategic Cost Management The process of strategic cost management is very crucial in the context of the present day business enterprises. There are several ways in which the process of strategic cost management can be used. They may be mentioned as below:

Employing strategic resources Making important business decisions Examining strategic resources Locating important resources

Main Aim of Strategic Cost Management The primary aim of strategic cost management is to make sure that the business organization is able to be successful in its endeavors and also grow. Strategic cost management is also aimed at sustaining the rate of growth that has been achieved by a particular company. Importance of Strategic Cost Management In the recent years it has been observed that a number of major auto parts manufacturing companies have been declaring themselves to be bankrupt. The main reason behind this can be attributed to the lack of a proper strategic cost management plan. Strategic Cost Management and Usage of Resources A very important part of the process of strategic cost management is the proper usage of the available resources. In order for a company to work properly it is necessary for it to address the issue of usage of resources in a proper manner. It has been observed that the companies, which use their resources in a cost effective way are able to make their strategic cost management plans run. This in turn makes sure that the economic stability of the company is maintained and it is consequently able to grow and sustain that growth.

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