The Impact of Strategic Cost Management Techniques on Firm Performance

Abstract

Strategic cost management plays an important role ever since economic, social, and
politics factors has highly fluctuated. The concept encounters cost control in internal process
and value added to the product, as well as alignment activities within an organization. Kelety
(2006) introduces comprehensive list of strategic cost management techniques such as value
chain management, target costing, and lean accounting. These techniques are aligned and
covered key cost management matters. Using the framework, this research collected 213
questionnaires from accounting executives. It has revealed that value chain management,
target costing, and lean accounting are all highly employed. The strategic cost management
techniques have impact on firm performance; overall and all aspects. The research findings
indicate the high level of awareness on strategic cost management issue by accounting
executive in Thailand.