From the Inside Flap
The long-term survival of a company is dependent on how knowledgeable its controllers and senior managers are about its costs. Do the costs accurately reflect the resources consumed by the business processes? Can the cost information generated by its financial systems be trusted to make key management decisions? In Designing Strategic Cost Systems, recognized business planning and cost management expert Lianabel Oliver provides a comprehensive and accessible road map for the design, development, and implementation of an effective and competitive strategic cost system.
While traditional financial statements measure aggregate organizational performance, they are totally inadequate to identify opportunities to increase a corporations competitiveness in the marketplace. A good cost system can provide the business intelligence to make better decisions at all levels in the organization. Written for senior managers who are evaluating a cost system redesign project for their organization and business professionals who are part of the project team, Designing Strategic Cost Systems demonstrates how to design a cost system that will be a more effective decision-making tool and a source of competitive advantage for the organization.
Based on the premise of tailoring a good cost system to the needs of its users, and which reflects the maturity level of the organization, this hands-on reference examines critical issues to address in the planning stages and details how to structure a cost systems design project from the ground up.
Designing Strategic Cost Systems covers:
- How to tell if a new cost system is needed: Discusses the internal and external manifestations of a dysfunctional cost system and how it can affect an organizations performance and competitive position
- The attributes of a strategic cost system: Explains the six major elements that comprise a cost system and how these elements interact to produce reliable and accurate cost information
- The redesign process: Describes the different project stages and how to organize the project to increase its probabilities of success
- The steps involved in developing the system design: Details the major milestones and tasks that should be accomplished to ensure consistency in the data collection process and minimize wasted time and effort in reworking information
From the Back Cover
Praise for Designing Strategic Cost Systems
"One of the key principles I learned in my years as an auditor (both internal and external) was to let the numbers speak to you. Through a practical and accessible approach, Lianabel Oliver confirms this idea and then takes it further. She challenges us to make sure that these numbers are presented in language that can be understood by the operating management and that the numbers truly reflect the cost components of our products and services. Oliver then gives us a structured method for developing that understandable language so that the numbers may, in fact, be adequately communicated, allowing us to make informed management decisions. This book is a must-read for those who want to clearly let the numbers speak to their senior management."
Angel Torres, CPA, President and CEO
Bacardi Corporation, Puerto Rico
"The author highlights the need for the strategic integration of all aspects of the business from the cost perspective. The concepts presented in this book can be readily applied to manufacturing, service, or any other economic sector. I highly recommend this book as a valuable tool for the evaluation, control, and measurement of an organization regardless of its size or years in business."
Manuel Cidre, Chairman
Puerto Rico Manufacturers Association
"Olivers work is an excellent resource for cost management practitioners committed to the design of strategic cost systems that deliver value-added cost data to decision makers. The author provides the reader with valuable insight into both internal and external manifestations of dysfunctional systems and the remedial steps requisite to the development of effective system redesigns that can be successfully deployed for competitive advantage."
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Ron Bleeker, Program Director
Cost Management Systems Collaborative Consortium for Advanced ManufacturingInternational