Thus the strategic management accounting techniques developed to provide business solutions and assist the management in taking strategic decisions.
Cost management techques of SMA- ABC costing which focuses on the cost associated with activities which are the cause of indirect costs, their management so as to achieve competitive advantage, Life Cycle costing; This tries to trace the cost of a product from its inception, growth, maturity and delcline,thus give a broad long term view to the management from marketing perspective. Quality costing; the costs which arise due to quality control, quality failure prevention, quality achievement etc. These costs are considered essential these days as quality of a product sets the survival benchmark for any brand. Strategic Costing; the wholistic view of the band position and market pentration strategy is kept as the prime focus under this for competitive positioning and marketing. Target Costing; thorough analysis of how much profit can be supported by the market and refining the product design to ensure that the target profit is achieved. ...Show more