For Accounting & Finance Professionals
There have been significant advances in the field of managerial costing over the past 30 years, but the adoption rate of these new costing approaches has been low. Most companies continue to uses traditional cost accounting approaches developed in the early to mid-20th century. Studies by the IMA and others show that most organizations are dissatisfied with their cost information, but are not motivated to change. Companies’ accounting and finance functions largely rely on cost accounting methods that support financial accounting’s external reporting function, but which are inadequate or inappropriate to support decision making by internal users. Evidence suggests that accountants often aren’t sure how to implement more effective managerial costing systems. As a result, they struggle to provide executives, line managers, and other employees with the costing information they need for decision making.
The Center for Managerial Costing Quality aspires to help management accountants and the broader business community recognize and understand the need, the benefits, and a path forward for improving cost information for internal decision support. This website provides resources to help accounting and finance professionals better understand and address the strategic cost needs of their organization. It provides:
A Conceptual Framework for Managerial Costing;
Examples of application of these principles and concepts; and
Tools for organizations to:
Assess the current state of their internal costing practices for their capability level to provide high quality cost modeling information;
Determine and define the nature of internal costing needed based on an organization’s economic situation and strategic objectives;
Assess potential internal costing methods and solutions to determine a fit with an organization’s needs; and
Overcoming common obstacles and implementation tips.