Investigating the Impact of Cost Management Strategies on Corporate Organizational Performance

The strategic cost management process is a cost-benefit planning and cost management system driven by sales-oriented, customer-centric, design oriented and multi-departmental. Targeted costing begins with cost management in the early stages of product development and is engaged throughout the entire product lifecycle by actively engaging the entire value chain. Targeted costing decision-making involves cross-departmental teams comprised of different units (production, engineering, R&D, marketing, and accounting) and responsible for determining acceptable sales price, the rate of return corresponding to sales. It also covers the possible cost of each item produced. This management strategy seeks to reduce costs and seeks to achieve greater market share by lowering costs than competitors. Organizations are looking to increase efficiency. Implementing a strategy of maintaining stability and sustainability is a priority, and the company is not about innovation and risk-taking but about offering products and services at competitive prices. Of course, it does not diminish the quality of the products and gives a reasonable profit.