IMA Releases New Report on Managerial Costing Models

/ -- IMA (Institute of Management Accountants) has released a new Statement on Management Accounting (SMA), 'Developing an Effective Managerial Costing Model,' that builds on IMA's Conceptual Framework for Managerial Costing (CFMC).

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This SMA identifies principles and concepts that organizations can use to model the behavior of resources and operations, and how resources are consumed by outputs. Based on these concepts, organizations can improve their managerial costing model by:
Assessing the current costing system's effectiveness Analyzing the organization's strategy and business environment Considering managerial cost modeling concepts Evaluating current managerial costing practices in the organization Designing the appropriate level of costing model sophistication for the organization Implementing the new cost model across the organization "The managerial costing done by companies is often not sufficient to support their internal decision making," said Co-author Raef Lawson, Ph.D., CMA, CSCA, CPA, CFA, CAE, professor-in-residence and Vice President of research and policy at IMA. "Having an effective managerial costing system that meets organizational needs such as operational cost control, financial planning and analysis (FP&A), pricing decisions, and capacity management is critical for organizations to effectively compete in today's business environment."