Cost Reengineering In Iranian Insurance Companies

The new organizations establish base on concepts such as value customer, value based management, value chain analysis, value engineering, wealth (value) creation. Three factors, cost, quality & quantity, are very important on continuing organizations. The companies try to delivery their products & services in at least cost, high quality & quantity to customers. Accounting information systems must be up dated with new conditions business & customer's needs. Updated accounting information systems provide information for make decision, planning, control & other tasks of management. Cost management system has been designed to reply to new management needs in currently business environment. Cost management system has a strategic view to cost, control & reduction expenses, increase quality & quantity. This article explains, how to adjust the costing framework in iranian insurance companies by new approaches in managerial accounting. Integrated activity based costing & economic value added model for determining cost of policies & fair price in insurance company will be discussed. The findings show that 1. cost of the policies should be adjusted, 2. Integrated activity based costing & economic value added model can be used in iranian insurance companies.