Question

discuss the concept of cost transformation and how management accountants can contribute towards the cost transformation of an organisation.

Answer 1

Answer:

Transformation Costs implies all expenses related with the manufacture of the Products, excluding crude material costs.True cost transformation is tied in with simplifying, refocusing and reinforcing your organisation so you can seek after development and give a superior customer experience.

The idea of cost transformation focuses around behavioural change by giving practical and logical planning and control system to change and persistently accomplish and keep up cost competitiveness. This is should be possible by the management accountant.

Managment bookkeeper/accountant can contribute in following manners towards cost transformaton of an organisation :

• By causing a cost-conscious culture .
• By dealing with the risks inherent in driving cost competitiveness.
• By associating items with profitability .
• By generating greatest value through new items.
• By incorporating sustainability to streamline or optimise profits.
• By understanding cost drivers, cost bookkeeping frameworks and processes.