Towards a Suggested Conceptual Framework to Cost Management (Concept, Objectives, Tools)

shaheen, mohamed 


 Introduction: Cost management techniques form part of an integrated cost management programme when the output of one technique becomes the input for another technique and the techniques mutually reinforce each other. The advantage of integrated cost management programmes over the use of single techniques is the additional cost reductions that can be achieved. In this paper we describe two forms of integrated cost management programmes, internal and external. Internal integrated cost management programmes operate within a single entity and typically create cost reduction pressures across the entire product life cycle. External integrated cost management programmes operate interorganizationally By linking the cost management programmes of buyers and suppliers, and by supporting joint buyer–supplier efforts to reduce costs. The assumed high level of designed-in costs is frequently used to suggest that the dominant focus of cost management should be in the design, not the manufacturing, phase of the product life cycle. Yet, many firms expend considerable energy on cost reduction during the manufacturing phase. Interorganizational cost management (IOCM) offers a disciplined approach to managing costs through the cooperative actions of firms in a supplier network. The firms can achieve this objective by recognizing that all entities within the chain will benefit through cooperation; the firms must then focus on increasing the efficiency of the entire supplier network and not just of them. A more efficient network will generate higher profits for the firms to share. IOCM seeks to increase profitability of supplier networks and the firms in them. During this research is to highlight the construction of a new conceptual framework for cost management in an integrated manner to the work of effective management of costs is based on a combination of internal and external perspectives to manage cost and integration among the methods used, and work to bring some sort of integration among these methods in order to maximize the benefit from efforts reduce costs, and move operations cost management than just a routine application for a separate set of tools that could bring some advantages to adopting the thought of rationalization based on the sustainability of the application and the transition to the integrated application.  Research problem: Cost management plays an important role in helping managers by providing a set of tools and features that help them to understand the nature of the costs of the behavior, and then own control and control of these costs of program development, as that helps in making decisions that will enable the organization to exploit the competitive advantages and reach completion a large proportion of the strategies of the company as to enable it to achieve cost leadership and strengthen its competitive position in the market. Hence the interest in building a new conceptual framework for managing cost depends mainly on the expansion of perception and attention dimensions and internal and external variables alike, and more pursuit of the events of greater integration in the application among these tools in an effort to maximize the proceeds realized from cost reduction programs, depending on the application of a set of cost management tools in an integrated manner but be better than the single application for each of these tools separately, and more, to draw attention to areas of pre-production associated with the design and the development of specific components and parts for your product specifications. That's the primary motivation for the researcher behind this research is to provide a new intellectual effort in order to help in how to formulate this new conceptual framework for the process of cost management in light of the current operating environment as an integrated contain concepts and objectives, tools and methods for cost management and how they are achieving this integration and integration among these tools. Thus, the basic problem is that the researcher wants to exposure and discussed based on shed light on a range of aspects related to the integrated management of costs and, in particular, are: 1. What is your concept of integrated management of costs? What are the goals and the main starting points for the process of the integrated management of costs? 2. What are the proposed methods applied during the internal dimension of the integrated management of costs? What are how they are achieving integration among these tools? What are the basic characteristics of these tools? What are the benefits realized from the integration of these methods involved the internal dimension of cost management? 3. What are the levels of relations between the company and its clientele and what is its impact on choosing the right style for the work of interactive management of costs between the companies? 4. What are the methods for the work of interactive management of costs among the various joint ventures in the supply chain of one group? What are the levels and stages of the application of these methods? What are the main characteristics of the nature of the cost associated with implementing management tools across the corporate relations? .  research goals: The main objective of this research to develop a conceptual framework proposal for the operation of integrated cost management a way that helps enterprises to further reduce costs by addressing integration between the internal and external dimension of cost management.  the results and recommendations of the research: The aim of this research provide curriculum proposal for the integrated management costs integration between internal and external perspective and in line with the recent developments surrounding the companies, and through the various stages of the product, and integration work between internal staff and network of dealers with the goals of the company's suppliers and customers of the company group. The Special structural building integrated management of costs on many of the starting points of intellectual practical lessons and observations from the review of a set of research and previous studies on the subject, and reached by the researcher through a previous study carried out for the review of the tools and methods of collection cost management during the stage of product and developed, and it was Foremost of these starting points include: 1) Work to mix work the outer dimension of the costs in the process of cost management, a way that helps to develop this concept and not to keep him confined in a narrow view of one company, without regard to what can be obtained through the involvement of foreign parties dealing with the company, which is characterized by it affects the company's business at the same time affected by it. 2) direction to take advantage of the application of a range of cost-management tools, and the work of the quality of integration and harmony with each other, in order to maximize the realized benefits of the company behind the application of these tools in an integrated manner compared to the benefits of the application solo these tools, because the examination and analysis of several previous research studies, It showed the presence of a research direction aims to apply the style individually to serve specific goals, or achieving integration between the two methods maximum, and that he wanted the researcher behind the study show how an intellectual merger between these methods in preparation for its application across a range of research and studies possible in the future. 3) Explain integration dimensions between a range of cost-management tools, and the statement of the practical application of the methodology for these tools, with exposure to some detail of the Toolkit and methods that interactive relationship between corporate controller, providing a range of methods and tools that enable the work of bonding between a group of companies in the framework of expand the overall interest of the client companies in the network rather than individual interest at the level of individual companies. Through intellectual discussions and set of ideas that have been presented within this research, the researcher reached a set of results that can be assembled in the form of the following points: 1) that the concept of integrated management of the cost differs from the traditional concept of cost management in the quest for the use of a cost management methods output as input to another method, which promotes the interrelationships between these methods, and bring more benefits associated with programs to rationalize costs and increase efficiency in the exploitation of resources in comparison the benefits gained from the use of one method individually. 2) represents a target costing method heart of integrated management of the costs of the system, and plays an important role in the integration of cost management tools through both internal perspectives or the outside, because it is considered as a smooth or link that connects these methods, so interest in the target costs and the imposition of a system my costs to a strict adherence to these costs but also helps in the integration and integration between different styles to manage the cost of integrated process. 3) The specific strategic objective by using the continuous improvement associated with product-specific style, to make sure that the company's production mix must include a range of products that are characterized by their ability to generate adequate profitability levels during the manufacturing process and throughout their life cycle. 4) There is a kind of integration of continuous improvement method and the target costing, shows this integration in the products that did not succeed in reaching the target level of costs be candidates in Aker programs of continuous improvement, and therefore relationship falls to clarify the priorities of the program of improvement, while the difference shows on the one hand the stage to receive attention from both of them, while the design enjoys great interest from the target costing method of the stage, while the continuous improvement of manufacturing is seen as operating as an area requiring attention from the stage. It is possible to provide a set of recommendations for future research in the field of integrated management of costs, could be grouped as follows: 1. for the application of the proposed framework for the management of the cost as an integrated operation opportunities, and a range of difficulties that could hinder this application in practice and how to overcome them. 2. forms of relations between the companies located in the supply network and its effects on the process of cost management and cost reduction programs in these companies. 3. Your practical approach using interactive tools costs between the companies, for this application, and the effects on the design process of new products, which in the configuration and setup developed for submission to the customers in the market.

Other data

Issue Date Apr-2017
Publisher مجلة الفكر المحاسبي، قسم المحاسبة والمراجعة جامعة عين شمس
Journal مجلة الفكر المحاسبي، قسم المحاسبة والمراجعة جامعة عين شمس، العدد الأول، السنة العشرون، 2017. 

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