Strateško upravljanje troškovima s posebnim osvrtom na troškove kompleksnosti
Strategic cost management with particular overview of complexity costs

Summary/Abstract: Modern business conditions in a globalized world and the economic crisis have created a need to redefine the foundations on which the businesses are based. The need for change in mission, vision and business strategy requires more detailed examination of the role of companies, greater flexibility in designing the operating model and effective strategic management. An important aspect of strategic management isaspect of strategic cost management. Effective cost management in contemporary business conditions is becoming a business imperative. Effective cost management has a different approach from the traditional concept of management that is more focusedon reducing costs. Reducing costs was carried out independently of other companies’ goalssuch as increased competitiveness, quality of products and services etc. Reducing costs, without taking into account other dimensions of business and company goals, was often done at the expense of quality, competitiveness and sustainable growth and development. Short-term profit goals did not take into account the realization of the long-term goals. Not enough attention is also paid to the nature of the costs themselves, their causes and their relation to actual performances. Some costs were considered to be inevitable and effective management of them could gain more or less improvement. Economic theory, resting on the premise of perfect competition, has developed the concept of fixed and variable costs. Numerous methods have been developed in order to analyze impact of these costs. However, the actual business conditions have proven the existence of nonlinearity of the cost, the dominance of mixed (and not purely fixed and variable), existence of complexity costs and “unavoidable”costs of achieving company goals. Quality costs (also called expenses for the quality and cost of poor quality) are the best example for that. As a result of the evolution of economic theory and practice, the less we talk about reducing, and more on managing costs. This paper focuses on the strategic cost management that does not ignore the hierarchy of business objectives, strategy and specifics of each company.

• Details
• Contents