Cost Management Strategy in Corporate Entities
Added on 2021-04-21
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Running head: ACCOUNTING FOR MANAGERSAccounting for ManagersName of the Student:Name of the University:Author Note
1ACCOUNTING FOR MANAGERSTable of ContentsIntroduction......................................................................................................................................2Academic rationale......................................................................................................................2Objective of the study..................................................................................................................2Research Question...........................................................................................................................3Literature Review............................................................................................................................3The importance of strategic cost management............................................................................3The essential cost management processes...................................................................................4Comparative study of Sainsbury and Tesco................................................................................7Research methodology.....................................................................................................................8Conclusion.......................................................................................................................................9References and Bibliography.........................................................................................................10
2ACCOUNTING FOR MANAGERSIntroductionThe process of cost management refers to the procedure that are usually adopted by thebusiness enterprises for the purpose of planning and controlling the budget in regards to a projector a business. The activities that have been essentially included in regards to the effective costmanagement can be referred to as planning, financing, managing, funding and controlling thecosts. These processes facilitate the completion of the selected project within the approvedbudget. Therefore, it can be further observed that the particular process of cost management is anessential process that is adopted by every organization for the purpose of applying the costreduction techniques. Moreover, a particular cost management process can be facilitated by theunison of various essential processes that have been discussed in this study (Bannuru caes et al.,2015). This particular study aims to focus on the particular process of cost managementstrategies that have been adopted by the different firms. In order to get a clear idea about theconcept of cost management a comparative study of the two well known corporate entities in thename of Sainsbury and Tesco have been discussed further in this study. Academic rationaleThe academic rationale behind this particular research proposal has been that the with thecorporate industry facing expansion in the recent times, there have been various projects that arebeing undertaken by the corporate entities. These projects require sufficient amount of cost thatif not budgeted properly may add up to be of huge volumes. Therefore, a proper costmanagement strategy should be adopted by the corporate entities for facilitating corporateexpansion. Therefore, this study aims to provide an overview into the cost managementstrategies that can be adopted by the business entities. Moreover, the different processes that areessentially involved in a particular cost management strategy have been discussed so that theimportance of the process can be understood.Objective of the studyThe objective of the study is to clearly understand the different stages that are involved ina cost management strategy. To be more precise, a comparative study of the corporate entities
3ACCOUNTING FOR MANAGERSSainsbury and Tesco has been drawn in order to understand the particulars of the chosen topic.Moreover, the objective of this particular study can be concluded as follows:Understanding the importance of a cost management strategyUnderstanding of the different processes that are involved in a particular costmanagement strategyFurther explanation of the chosen topic with comparative study of the Sainsbury andTescoResearch QuestionThe particular research question that can be developed in regards to the particular studyare as follows:What is the importance of a cost management strategy?What are the different processes that are followed by the corporate firms forimplementing a cost management strategy?What are the particular cost management strategies implemented by Sainsbury andTesco?Literature ReviewThe importance of strategic cost managementThe particular event of cost management is an imperative process in regards to acorporate entity. This means that strategic cost management has become essential due to the factthat the formulation of the crucial company strategies, the accomplishment of the objectives ofthe organization and the development of the potential cost drivers is facilitated by the process ofa strategic cost management. The cost management accountants are of the opinion that theimportance of the strategic cost management should not be underestimated. This is because apotential cost management strategy essentially facilitates the reduction in the cost ofmanufacturing the product that is carried out by a single corporate entity (Bannuru caes et al.,2015).
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