- Cost Transformation
The right information is vital to driving and holding costs down while preserving or enhancing customer value on an ongoing basis. While some scenarios may be intuitive, taking decisions based on intuition alone is likely sometimes to result in some value being destroyed. Even when intuitive decisions are taken, it can be hard to assess their impact without appropriately comprehensive records, reporting systems and processes.
Not every organisation requires all the components of robust cost-accounting systems and processes, but all organisations should critically evaluate their systems and processes from time to time to ensure they can continue to support effective decision making. Management accountants, with their knowledge of the business model and future plans and strategies, should plan for the future decision support needs of decision makers.