Beyond Traditional Cost Reporting the Business Strategy Connect

Abstract

As a continuum of the Beyond Traditional Cost Reporting series, started in March 2024, this article starts with addressing the Business Strategy context and how the Internal Cost Reporting should be able to provide support for the Cost Connect to Business Strategy. While the Business Strategy concentrates on the twin rails of Top Line and Bottom-Line growth, once the Top Line growth strategy is achieved, it is assumed that the Bottom-Line growth will automatically follow. It is like going ahead with full steam ahead in unchartered territory, without a compass or in the present-day context a Google Map. The reason for many businesses failures, point out the absence of cost connect to the Business Strategy. All these and the vital need for transformation of the Cost Management System will be explored in this article.