Strategic Management Accounting and Cost Control Methods
Cost Variabilization and Flexibility
Cost variabilization is the process of transforming fixed costs into variable costs in order to increase cost flexibility and reduce risk related to capacity utilization. It allows costs to better follow the level of activity. Examples: Outsourcing, use of agency workers, and contracting services instead of owning resources.
Rolling Budgets for Business Agility
A rolling budget is a continuously updated budget that always covers a fixed future period. When a period ends, a new period is added, and the budget is revised based on current information. This improves flexibility and responsiveness to changes in the business environment.
Operational Performance Measures
These are non-financial measures that are reported
...