Article Sidebar

Download
View Article
Statistic
Read Counter : 1858 Download : 945

Downloads

Download data is not yet available.

Main Article Content

Abstract

This study investigates the integration of cost management and strategic decision-making, focusing on the role of managerial accounting. It aims to explore how advanced cost management techniques, particularly Activity-Based Costing (ABC), contribute to achieving competitive advantage and aligning with strategic objectives. The research employs a qualitative design, using case studies and interviews with senior managers and financial controllers in medium to large manufacturing firms. This approach provides detailed insights into the implementation and effectiveness of ABC and other cost management practices in strategic decision-making. The findings reveal that ABC enhances cost information accuracy, facilitating more informed strategic decisions regarding pricing, product mix, and process improvements. Top management support and a conducive organizational culture are crucial for successful ABC implementation. Firms that regularly update their cost management practices maintain accuracy and relevance in cost information. The balanced scorecard effectively aligns cost management with strategic objectives, improving strategic alignment and decision-making. Organizations should prioritize adopting ABC, ensure strong top management support, and foster a culture of innovation. Regular updates to cost management practices and investment in training programs enhance managerial competencies and decision-making. These findings provide valuable insights for practitioners and scholars, highlighting the strategic role of managerial accounting in driving competitive advantage.

Keywords

Cost Management Strategic Decision-Making Managerial Accounting Activity-Based Costing Balanced Scorecard

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite
Susilowati, E. (2023). Cost Management and Strategic Decision Making: The Role of Managerial Accounting. Atestasi : Jurnal Ilmiah Akuntansi, 6(1), 457–473. https://doi.org/10.57178/atestasi.v6i1.855
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Adamova, G. A. (2022). Activity-based cost accounting as a tool for strategic company management. E-Management, 5(2), 45–52. https://doi.org/10.26425/2658-3445-2022-5-2-45-52
  2. Ainsworth, G. B., Pita, P. G., Pita, C., Roumbedakis, K., Pierce, G. J., Longo, C., Verutes, G. M., Fonseca, T. C. P., Castelo, D., Montero-Castaño, C., Valeiras, J., Rocha, F., García-de-la-Fuente, L., Acuña, J. L., Rueda, M. del P. F., Fabregat, A. G., Martín-Aristín, A., & Villasante, S. (2023). Identifying sustainability priorities among value chain actors in artisanal common octopus fisheries. Reviews in Fish Biology and Fisheries, 1–30. https://doi.org/10.1007/s11160-023-09768-5
  3. Akyüz, Y., Salali, H. E., atakan, pelin, Günden, C., Yercan, M., Lamprinakis, L., Kårstad, S., Kasperczyk, N., Mattas, K., Lazaridou, D., Yener, G., Alayidi, A., Kunchulia, I., & Knez, M. (2023). Case Study Analysis on Agri-Food Value Chain: A Guideline-Based Approach. Sustainability, 15(7), 6209. https://doi.org/10.3390/su15076209
  4. Al-mawali, H. (2023). Proposing a strategy map based on sustainability balanced scorecard and DEMATEL for manufacturing companies. Sustainability Accounting, Management and Policy Journal, 14(3), 565–590. https://doi.org/10.1108/sampj-04-2022-0170
  5. Amer, F., Hammoud, S., Khatatbeh, H., Lohner, S., Boncz, I., & Endrei, D. (2022). The deployment of balanced scorecard in health care organizations: is it beneficial? A systematic review. BMC Health Services Research, 22(1). https://doi.org/10.1186/s12913-021-07452-7
  6. Aulia, R. (2023). Enhancing Decision Making through Professional Judgment and Comprehensive Information Analyses. Advances in Managerial Auditing Research, 1(3 SE-Articles). https://doi.org/10.60079/amar.v1i3.230
  7. Bugaian, L. (2022). Responsibility Centre-Managerial Accounting Instrument. Journal of Social Sciences. https://doi.org/10.52326/jss.utm.2022.5(2).16
  8. Calota, G. (2021). Analysis Of The Entrepreneurial Environment In The South-West Region Of Oltenia In The Context Of The Covid-19 Pandemic. Horizons for Sustainability, 1, 21–30.
  9. Carmona, S., & Ezzamel, M. (2023). Management Accounting and Strategy – A Review and Reflections on Future Research. European Accounting Review, 1–28. https://doi.org/10.1080/09638180.2023.2215821
  10. Casas-Arce, P., Cheng, M. M., Grabner, I., & Modell, S. (2022). Managerial Accounting for Decision-Making and Planning. Journal of Management Accounting Research, 34(1), 1–7. https://doi.org/10.2308/jmar-10784
  11. Crișan, E. D., & Grama, L. R. (2022a). The Influence of Contingent Factors on Spreading the Activity-Based Costing Method (I). CECCAR Business Review, 3(3), 17–25. https://doi.org/10.37945/cbr.2022.03.03
  12. Crișan, E. D., & Grama, L. R. (2022b). The Influence of Contingent Factors on Spreading the Activity-Based Costing Method (II). Contabilitatea, Expertiza Şi Auditul Afacerilor, 3(4), 34–42. https://doi.org/10.37945/cbr.2022.04.04
  13. Dudić, Z., Dudic, B., Greguš, M., Novackova, D., & Djakovic, I. (2020). The Innovativeness and Usage of the Balanced Scorecard Model in SMEs. Sustainability, 12(8), 3221. https://doi.org/10.3390/SU12083221
  14. Elghaish, F., Hosseini, M. R., Talebi, S., Abrishami, S., Martek, I., & Kagioglou, M. (2020). Factors driving success of cost management practices in integrated project delivery (IPD). Sustainability, 12(22), 9539. https://doi.org/10.3390/SU12229539
  15. Escobar-Mamani, F., Argota-Pérez, G., Nina, V. D. A., Aguilar-Pinto, S. L., Fernández, G. M. Q., & Cepeda, O. E. A. (2021). Costeo basado en actividades (ABC) en las PYMES e iniciativas innovadoras: ¿opción posible o caduca? Revista de Investigaciones Altoandinas, 23(3), 171–180. https://doi.org/10.18271/RIA.2021.321
  16. Fabac, R. (2022). Digital Balanced Scorecard System as a Supporting Strategy for Digital Transformation. Sustainability, 14(15), 9690. https://doi.org/10.3390/su14159690
  17. Fadhilah, W. A., Sembiring, E. E., & Indrawati, L. (2022). Penerapan Activity Based Costing Untuk Menentukan Harga Pokok Produksi Dalam Rangka Meningkatkan Keunggulan Kompetitif. Indonesian Accounting Literacy Journal, 3(01), 726–740. https://doi.org/10.35313/ialj.v2i04.3935
  18. Firli, O. M., Tresna, P. W., & Herawati, T. (2023). Analysis of Company Performance Assessment Using the Balanced Scorecard. Owner : Riset Dan Jurnal Akuntansi, 7(1), 612–618. https://doi.org/10.33395/owner.v7i1.1205
  19. Günay, M. (2022). Leadership Vision in Advanced Technology. In International School on Neural Networks, Initiated by IIASS and EMFCSC (pp. 1161–1171). Springer.
  20. Huang, Z., Hu, T., & Huang, J. (2022). Application and Research of Enterprise Strategic Management Based on FAHP Model in Management Accounting. BCP Business & Management, 34, 317–323. https://doi.org/10.54691/bcpbm.v34i.3031
  21. Janus, T., Tomlinson, J., Anghileri, D., Sheffield, J., Kollet, S., & Harou, J. J. (2023). Multicriteria land cover design via coupled hydrologic and multi-sector water management models. Journal of Hydrology, 620, 129294. https://doi.org/10.1016/j.jhydrol.2023.129294
  22. Karisa, J. Y., & Wainaina, L. (2020). Balanced Scorecard Perspectives and Organizational Performance: Case of Kenyatta National Hospital, Kenya. 2(3), 102–113. https://doi.org/10.35942/JBMED.V2I3.140
  23. Kurniawan, B. (2023). Exploring the Societal Implications of Accounting Practices and Standards. Advances in Applied Accounting Research, 1(3 SE-), 139–149. https://doi.org/10.60079/aaar.v1i3.193
  24. Margherita, A., Banchi, E., Biffi, A., Castri, G. di, & Morelli, R. (2022). Beyond Total Cost Management (TCM) to Systemic Value Management (SVM): Transformational Trends and a Research Manifesto for an Evolving Discipline. Sustainability, 14(19), 12890. https://doi.org/10.3390/su141912890
  25. Massicotte, S., & Henri, J.-F. (2021). The use of management accounting information by boards of directors to oversee strategy implementation. British Accounting Review, 53(3), 100953. https://doi.org/10.1016/J.BAR.2020.100953
  26. Nurfadila, N. (2024). Enhancing Public Financial Management through Performance Evaluation and Cost Systems. Accounting and Management Financial Review, 2(1), 1–12. https://doi.org/10.60079/amfr.v2i1.264
  27. Okereke, R., Zakariyau, M., & Eze, E. C. (2022). The Role of Construction Cost Management Practices on Construction Organisations’ Strategic Performance. 2(1), 20–39. https://doi.org/10.22452/jpmp.vol2no1.2
  28. Oyewo, B. (2022). Contextual factors moderating the impact of strategic management accounting on competitive advantage. Journal of Applied Accounting Research, 23(5), 921–949. https://doi.org/10.1108/jaar-04-2021-0108
  29. Pardaeva, S. (2022). Directions for effective organization of strategic cost accounting. Economics and Education, 23(2). https://doi.org/10.55439/eced/vol23_iss2/a22
  30. Pirvu, C., Vasilescu, L. G., Mehedintu, A., & Pirvu, C. D. (2012). Implementation of strategic principles in cost management: Control of cost variations through statistical studies. African Journal of Business Management, 6(45), 11161–11170. https://doi.org/10.5897/AJBM11.1938
  31. Porporato, M., & Recalde, J. T. (2021). Costos Basados en las Actividades (ABC): aplicando una herramienta para la gestión estratégica en empresas de servicios. 17(32). https://doi.org/10.18270/CUADERLAM.V17I32.3448
  32. Psarommatis, F., Danishvar, M., Mousavi, A., & Kiritsis, D. (2022). Cost-Based Decision Support System: A Dynamic Cost Estimation of Key Performance Indicators in Manufacturing. IEEE Transactions on Engineering Management, 1–13. https://doi.org/10.1109/tem.2021.3133619
  33. Pylypenko, A., Popov, O., & Ostrinina, O. P. (2023). Strategic controlling in adaptive cost management of integrated corporate associations of enterprises. Actual Problems of Economics, 1(259), 14–23. https://doi.org/10.32752/1993-6788-2022-1-259-14-23
  34. Reynoso, L. F. L., & del Río, C. V. B. (2023). Financial stability, return, and asset, liability, and income diversification in Mexican largest bank. Revista Mexicana de Economía y Finanzas Nueva Época REMEF, 18(2: Abril-junio), e777–e777.
  35. Sastradinata, I. (2021). Balanced Scorecard as a Method of Assessing the Performance of a Hospital Management System. 4(1), 143–147. https://doi.org/10.37275/OAIJSS.V4I1.34
  36. Simonova, M. (2023). Topical questions of organizing an effective cost management system in a competitive environment. Èkonomika i Upravlenie, 29(4), 443–452. https://doi.org/10.35854/1998-1627-2023-4-443-452
  37. Sisman, G. (2022). Implementing lean six sigma methodology to reduce the logistics cost: a case study in Turkey. International Journal of Lean Six Sigma, 14(3), 610–629. https://doi.org/10.1108/ijlss-02-2022-0054
  38. Tambunan, T. (2022). A conceptual framework of quality cost chain in strategic cost management. The Tqm Journal. https://doi.org/10.1108/tqm-09-2021-0281
  39. Teichgräber, U., Sibbel, R., Heinrich, A., & Güttler, F. (2021). Development of a balanced scorecard as a strategic performance measurement system for clinical radiology as a cost center. Insights Into Imaging, 12(1), 69. https://doi.org/10.1186/S13244-021-01009-2
  40. Tirado, J. S., & Mavlutova, I. (2023). The Impact of Strategic Management Accounting on The Financial Performance of Low-Cost Airlines. Wseas Transactions on Environment and Development, 19, 786–797. https://doi.org/10.37394/232015.2023.19.74
  41. Vita, G. Di, Spina, D., Cianni, R. De, Carbone, R., D’Amico, M., & Zanchini, R. (2023). Enhancing the extended value chain of the aromatic plant sector in Italy: a multiple correspondence analysis based on stakeholders’ opinions. Agricultural and Food Economics, 11(1), 1–24. https://doi.org/10.1186/s40100-023-00257-8
  42. Watson, J. (2021). Balanced Scorecard Improvement. Global Journal of Technology and Optimization, 11(2), 1–3. https://www.hilarispublisher.com/open-access/improvment-of-the-balanced-scorecard.pdf
  43. Yalçin, S. (2015). Rekabet avantaji sağlamada strateji̇k mali̇yet yöneti̇mi̇ni̇n muhasebe uygulamalariyla i̇li̇şki̇leri̇. 15(15), 15–34. https://dergipark.org.tr/en/download/article-file/55360
  44. Zamula, O., & Zamula, O. (2022). Cost management of enterprises based on the concept of sustainable development. Ekonomìčnij Analìz, 32(3), 208–215. https://doi.org/10.35774/econa2022.03.208
  45. Zorlescu, B., Peneoasu, M., & Negoescu, B. (2015). Costs calculated by the ABC system for underlying managerial decisions. The Romanian Journal of Economics, 41, 156–172.
  46. Скороход, І. С., & Ребрина, Н. Г. (2023). Особливості формування та розвитку логістичної інфраструктури електронної комерції. Проблеми Сучасних Трансформацій. Серія: Економіка Та Управління, 10. https://doi.org/10.54929/2786-5738-2023-10-04-04