MODERN METHODS OF STRATEGIC MANAGEMENT ACCOUNTING: ENTERPRISE APPLICATION AND IMPROVEMENT RECOMMENDATIONS

Abstract

Abstract

Strategic Management Accounting (SMA) offers enterprises a toolkit to manage costs in ways that strengthen competitive advantage. However, implementation frequently fails because methods are adopted as isolated techniques without aligned data governance, responsibility structures, and strategy-linked performance routines. This paper proposes an implementable, phased SMA architecture that integrates activity-based analytics (ABC/TDABC), strategic cost management methods (target costing, kaizen costing, value chain analysis, benchmarking) and performance systems (Balanced Scorecard and value-based logic such as EVA) into a single decision loop. Using a design-oriented methodology that combines structured literature synthesis with dissertation-based practice diagnosis in an emerging-market context, we derive (i) a taxonomy of SMA methods by decision use-case and data intensity; (ii) a governance model linking responsibility centers, budgets, KPI ownership, and cost drivers; and (iii) a practical roadmap for rollout and scaling. The framework helps enterprises shift from ‘cost recording’ to ‘cost-driver management’ and supports durable margin improvement by increasing cost transparency, improving profitability analytics, and accelerating strategic decision-making.