engleski

Strategic Cost Management in Croatian Lean Companies

Strategic cost management, as a contemporary cost managing concept, represents searching the possibilities of achieving the lowest possible business costs level. The strategic cost management models are developed as a response to the constant need for new and more accurate information on cost volume which is used to identify the wining products and/or services and withdrawal of less profitable or non profitable ones. All that information could be gained thanks to the development of technology which allows tracing costs on every level and for every product. In economic theory and practice it is clear that without costs there is no business and that costs anticipate revenues, but it is also obvious that in every segment of business process there is a possibility of cost reduction with the keynote that cost reduction should not undermine quality and functionality of a product. Results of conducted empirical research in Croatian manufacturing companies point to a lack of implementation of strategic cost management methods (especially in SMEs) regarding traditional cost management methods. The result of this kind of policy is a low level of employee motivation, poor overall manufacturing process control, reduced productivity, and inferior business results.

Strategic cost management; SMEs; Cost methods

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