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.