The Impact of Functional Analysis in Reducing Costs Under the Strategic Approach of Cost Management: An Exploratory Study

Ahmed Maher  Mohammed Ali; Qasim Habeeb Nashid  Jay

doi:10.55202/ajcas.v2i1.146

المؤلفون

Ahmed Maher Mohammed Ali Department of Accounting, faculty of Administration and Economics, University of Kufa https://orcid.org/0000-0003-3936-0313
Qasim Habeeb Nashid Jay Department of Accounting, faculty of Administration and Economics, University of Kufa https://orcid.org/0000-0002-8627-8171

DOI:

https://doi.org/10.55202/ajcas.v2i1.146

الكلمات المفتاحية:

Functional analysis technique, strategic cost management, cost reduction.

الملخص

Intense competition between economic units is today's most noticeable in the business world. Because of this competition, traditional cost management systems can't provide information that helps economic units in general and Iraq, in particular, meet the new requirements that focus on customer satisfaction. This led to the creation of There was a need for a strategic technique that helps break down a product into its features and functions in a way that allows the economic unit to cut costs without having to change the quality the customer wants. There was also a need for information with a strategic dimension that would help the economic unit uniquely make decisions. However, adopting one strategy without another is hard. The current research aims to show the impact of adopting the functional analysis technique and strategic cost management to reduce product costs and achieve customer satisfaction with product functions and quality. Where the results of the statistical analysis indicated the highest mean (4.2) and standard deviation (86%) and the coefficient of variation of (20.66) within the percentage weight of (77.14) indicating that the compatibility of functional analysis and the strategic approach to cost management works to eliminate and enhance the value At the lowest total cost by providing the level of performance that the customer expects from the sample size of (35) workers in the Kufa Cement Factory

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