Strategic Cost Management Practices and Organizational Performance

Abstract

Strategic cost management has emerged as an essential approach for organizations seeking to enhance operational efficiency and achieve sustainable competitive advantage in an increasingly dynamic business environment. the relationship between strategic cost management practices and organizational performance by exploring the adoption of techniques such as activity-based costing, target costing, value chain analysis, life cycle costing, and continuous cost improvement. how these practices contribute to cost optimization, resource utilization, decision-making, profitability, and overall organizational effectiveness. A quantitative research design was employed using structured questionnaires administered to managers and accounting professionals across selected organizations. The collected data were analyzed using appropriate statistical techniques to determine the influence of strategic cost management practices on key performance indicators. The findings indicate that organizations implementing strategic cost management practices experience significant improvements in financial performance, operational efficiency, and strategic decision-making. integrating strategic cost management into organizational planning enables firms to respond more effectively to market competition while maintaining long-term profitability and sustainability. The research provides valuable insights for business managers, policymakers, and accounting professionals seeking to strengthen organizational performance through effective cost management strategies.