The establishments are witnessing many internal and external environmental variables that have had important effects on cost accounting systems and their information outputs, which necessitates the need to develop these systems and adopt modern approaches, methods and procedures both in the field of measurement and analysis and to be able to meet the needs of the administration from Information, which is characterized by a high degree of accuracy, and the difference in quality, and the appropriate degree of detail, and in a timely manner, which help in managing the cost strategies adopted by enterprises.
On the other hand, the review of accounting literature reveals the existence of many opinions and studies that have criticized some of the role and effectiveness of traditional methods of cost analysis, in terms of achieving the strategic dimension in the analysis, and the continuous improvement in the performance of activities, and reflected in the improvement and reduce cost and achieve cost leadership while maintaining At the appropriate level of quality of products.
Cost reduction is one of the most important strategies adopted by enterprises, and the most effective to achieve competitive advantages in light of the variables of the modern environment, which is very competitive. The cost reduction process needs an integrated cost management framework. Traditional cost reduction approaches should be reviewed and new approaches, methods and tools developed with a holistic cost management perspective should be adopted. The most important of these approaches is strategic cost analysis, which seeks to integrate the cost and strategic dimension Management, and is concerned with cost study, analysis, improvement, and reduction, not just attention to control, and is directly related to the enterprise strategy.
The cost of production analysis service is a special and distinctive service that experts and industry professionals need to do. Therefore, the company took the initiative to provide this service to its customers in order to enable them to assess their current situation and enable them to reduce production costs in order to increase competitiveness and raise the margin of profits.