MSc Strategic Accounting Essay Example | Topics and Well Written Essays - 2500 words

MSc Strategic Accounting - Essay Example Due to the fact that the strategic costing technique firmly implies long-term future oriented attributes, it can facilitate the organisations to reduce different types of accounting uncertainties (Cadez & Guilding, 2008). Critical Review of Literature With respect to the significance of the strategic costing, Cadez (2008) has mentioned that the notion of strategic costing has become a widely used technique for the organisations in case of proactively performing their range of accounting practices. In relation to the present fiercely competitive scenario of the global business environment, the organisations seek to integrate well-built Strategic Management Accounting (SMA) techniques in order to efficiently attain their strategic goals (Cadez, 2008). Contextually, it has also been found from the study in Qucosa (2006) that the concept of strategic costing constitutes a broad focus beyond the notion of controlling or reducing organisational costs associated with its range of business o perations. Moreover, the nature of strategic costing also encompasses cost information which is significantly recognised as one of the major attributes of making exceptional organisational decisions. In this regard, the study of Qucosa (2006) has further depicted a conceptual framework with respect to the major characteristics of strategic costing. Fig: Concept Strategic Cost Management (Qucosa, 2006) Philosophy: The philosophy of strategic costing can be considered as one of the major attributes which ensures to improve revenue as well as cost of the organisations. The concept of strategic costing significantly emphasises upon enhancing organisational productivity, capitalising in terms of profit enhancement along with augmenting customer satisfaction (Qucosa, 2006). Attitude: The concept of strategic costing constitutes a proactive attitude which ensures to encompass all the costs associated with the organisational processes that result from the management decisions. In this regar d, the attitude of strategic costing involves six important elements such as holistic nature, market orientation, anticipatory approach, continuousness, participative and cross-functional attributes (Qucosa, 2006). Techniques: Techniques can be recognised as the major attribute that exists within the concept of strategic costing. The concept of strategic costing firmly involves reliable techniques that are implemented by the organisations in order to accomplish their desired goals or obtain overall needs (Qucosa, 2006). The notion of strategic costing can also be considered as an effectual curriculum for the organisations. In accordance with the viewpoints of Banerjee (2006), it has been revealed that an effective practice of strategic costing tends to facilitate the firms to frequently analyse and recognise their major cost drivers, thus helping them to minimise costs and increase the overall value of the firms. Such types of management accounting programme plays a vital role for t he organisations in terms of preparing budget parameter as well as it also facilitates