Today’s business environment places a premium on the ability to extract value from data and on increasing connectivity throughout an organization. One way to achieve this is through the use of managerial cost modeling. Use of this technique can improve the visibility and connectivity of operational and financial data through causal modeling focused on supporting decision making throughout an organization.

This SMA enables the reader to assess the ability of their organization’s cost model to provide internal decision-support information based on the 10 modeling concepts presented in the IMA Conceptual Framework for Managerial Costing. It can be used to help organizations:

  • Assess the level of internal decision-support cost information needed to enable managers to meet their organization’s goals and objectives.
  • Evaluate their current managerial costing capability.
  • Evaluate the ability of managerial costing solutions, such as software and specific costing methodologies, to meet the organization’s information and decision-making needs.
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About the Authors

Raef Lawson , Ph.D., CMA, CSCA, CPA, CFA, CAE
Raef Lawson, Ph.D., CMA, CSCA, CPA, CFA, CAE, is the Chair of IMA’s Research Foundation and former professor-in-residence and vice president of research and policy at IMA. You can reach him at raeflawson@outlook.com.
Gary Cokins , CPIM
Gary Cokins, CPIM, is the founder and owner of the consulting firm Analytics-Based Performance Management LLC in Cary, N.C. He is also a member of IMA and served as IMA’s executive-in-residence from 2015 to 2018. You can reach Gary at (919) 720-2718 or gcokins@garycokins.com.
Douglas T. Hicks , CPA
Douglas T. Hicks, CPA, is president of D. T. Hicks & Co., a consulting firm concentrating on the decision-costing needs of small and midsized organizations. He can be reached at dohicks@aol.com.
Kip Krumwiede , Ph.D., CMA, CSCA, CPA
Kip Krumwiede, Ph.D., CMA, CSCA, CPA, is the director of research at IMA. You can reach him at kkrumwiede@imanet.org.
Monte R. Swain , Ph.D., CMA, CPA, CGMA
Monte R. Swain, Ph.D., CMA, CPA, CGMA, is the Deloitte Professor of Accountancy at Brigham Young University. He’s also a member of IMA’s Salt Lake Area Chapter. Monte can be reached at monte@byu.edu.
Larry R. White , CMA, CSCA, CFM, CPA, CGFM
Larry R. White, CMA, CSCA, CFM, CPA, CGFM, is the executive director of the RCA Institute. He was a member of the International Federation of Accountants’ Professional Accountants in Business Advisory Group (2015-2020) and is a past Chair of the IMA® Global Board of Directors. He can be reached at lrwhitecma@hotmail.com or lwhite@rcainstitute.org.
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