Consulting Services:

Strategic Cost Management

Information systems that gather product cost information play a key role in the strategic planning process. Cost information systems help managers understand their company’s cost structure. That information is critical for making decisions that will help the organization achieve or exploit a strategic competitive advantage. Every type of cost information system has limitations that management must understand in order to make informed decisions about what products to produce, how they should be produced and how to price them.

At Sisterson, our cost management team is skilled in evaluating cost information systems in terms of the role they are intended to play helping achieve business success. We examine, we listen, and we look for signals that a company’s cost system is misleading management.  By understanding your current cost system, our skilled professionals can effectively recommend, design, and implement an appropriate cost information system by following a three step process:

1. Identify the activities being performed in your organization which create costs
2. Calculate the cost of performing these activities
3. Assign the costs to the products and services which use the activities