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This is a post-graduation level course of accounting, offered at Central Queensland University (CQU), Australia. Branyan, Brisbane, Cairns, Emerald, Mackay, Melbourne, Noosaville, Rockhampton, Sydney are those cities where Central Queensland University (CQU) has flourished its campuses.
Strategic Cost Management (ACCT20047) is the process of improving the strategic position of a business by reducing the total cost of the company. In elementary words, it is the combined process of decision-making structure with the cost information to reinforce the business strategy towards sustainable development of the organisation. It follows the guidelines of cost management to measure and manage costs to align it with the company’s business strategy. This goal can be accomplished if you have an accurate understanding of the cost support a company's strategic position and which cost either weaken it or have no impact on the strategic position of the company. Therefore, subsequent cost reduction initiatives need to be introduced dedicated to focus on those cost in the second category. Contrarily, it may contribute to the upgrading of cost vital to support the strategic position of the business. It is nearly worthless to cut cost in strategically important areas to reduce the customer experience which can eventually lead to a decline in the sales. Therefore, it is imperative to involve management in cost reduction activities to provide input regarding the certainty with which the cost must be incurred to support and upgrade the competitive position of the firm.
Moreover, Strategic Cost Management (ACCT20047) is about confronting the challenges faced while visualising and deciding the goals of an organisation. It also provides an introduction to the value chain and the role of accounting in strategic cost management. Therefore, these programs are dedicated to identify and analyse the cost drivers to lower cost and maximise the total value in a certain organisation. In other words, Strategic Cost Management (ACCT20047) can be defined as "the thorough investigation of every process within an organisation, knocking down all the departmental barriers, understanding the business of your supplier, and helping them to improve their processes". Thus, in the global competitive environment, the most efficient firms experience all of their spendings as an investment. They make efficient spending decisions based on a strategic vision and their internal capabilities to deliver value from that investment. Traditionally firms have been under pressure to cut costs in the short term without really thinking about sustainable growth and integration with the overall business strategy. So, Strategic Cost Management (ACCT20047) is very crucial for the development of an organisation.
The study of the course of Strategic Cost Management (ACCT20047), allows students to become capable to learn and apply activity-based accounting systems and other tools relevant to cost management. The programs associated with the Strategic Cost Management are mandatory for creating budget parameters and a structure for purchasing to avoid loss in the business. Therefore, acquiring complete knowledge of this course enhances the ability of a student to lower the businesses cost and also create a strategic and competitive advantage beneficial for the company. Therefore, this course emphasises the significance of cost management in the development of an organisation in the installation of an appropriate framework of strategic cost management. It is imperative to do so to reduce its cost in the key areas on which the success of an organisation is mainly dependent.
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