Cost Management and Strategy

Chapter ( 1 )

Everyone wants to be successful in this life .. but where are the keys to
success ?
* Throughout this course we are interested in knowing :-
1. How Managers use Cost management to build successful company.
2. How The Management Accounting can play a key role in making a firm or
organization successful.
But, in this case we must know what do we mean by Success
?
* A firm must define clearly what it means by success in its Mission statement.
* Then, it must develop a roadmap to accomplish that mission which we call
Strategy.
* The key idea is that success comes from developing and implementing an effective
strategy aided by Management accounting methods which we are going to cover
in this course.
* Essential Concepts you have to know :-
1. Management Accountants : are the accounting and finance professionals
who develop and use cost management information to assist in implementing the
organizations strategy.

2. Cost Management Information : serves all management functions and

consists of financial information about costs and revenues, and non-financial
information about customer retention, productivity, quality, and other key success
factors for the organization.

3. Cost Management : is the development and use of cost management

information.

4. IMAs New definition of Management Accounting : is a

profession that involves partnering in management decision making, devising
planning and performance management systems, and providing expertise in financial
reporting and control to assist management in the formulation and implementation of
an organizations strategy.