Strategic Cost Management of the Product Organization in COVID-19

Abstract

The current Cononavirus disease 2019 (COVID-19) epidemic is causing serious economic, society and politics problems. Including how to citizens around the world spending their lives. The global economy was severely depressed. All business sectors were disrupted. Some organizations was closed and eventually shut down caused the termination of employment. People have suffered from such consequences. On the other hand, businesses will face intense competition due to the highly competitive environment in the globalized world, Natural Circumstances, Changing Society and Politics.

From this situation, business organizations have established strategies for their survival. The organization showed enthusiasm for solving the crisis. To find the way to manage costs in the organization to survive in the high competition in the turndown economic from the problem of the spread of the COVID-19 virus that is currently facing. Therefore, the organization and cost strategy could be adapted to the organization in order to lead the business to survive. Management has to consider several organizational strategies in order to increase its competitiveness in the increasingly complex. Therefore, the business process has been adjusted for efficiency. The organization must have a Management Control System implementing a cost management strategy by using the concept of management cost accounting. There are two objectives, which are Decision-Making Roles and Roles in Cost-Effective Management. The Strategic Cost management includes Activity Management, Target cost, Cost Cycle, Total Cost Management, Time Management, Lean production, Sustainability Accounting, etc. Such a strategy that can be enhance competitiveness will benefit the organization and the national economy.