Analysis of The Current State of Strategic Cost Management
Abstract
This paper examines the current state of Strategic Cost Management (SCM) practices across various industries and enterprise sizes, highlighting the transition from traditional cost accounting systems to strategically driven cost frameworks. The article explores both the theoretical foundations of SCM and its practical applications through a comprehensive review of the literature and a comparative analysis of real-world company case studies. Drawing from academic research, industry reports, and cross-industry comparisons, the analysis digs into how widely advanced costing methods—such as activity-based costing (ABC), target costing, and value chain analysis—are being adopted. It also looks at how digital tools like ERP systems, cloud technologies, and AI-powered analytics are being woven into cost strategies. Finally, the study highlights key challenges that companies face, such as outdated technology, poor alignment with business strategy, and gaps in employee skills.
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