Integrating Financial Strategy with Operational Cost Structures in Manufacturing Cost Management Models
Year: 2022
Type: article
Abstract: This paper investigates the integration of financial strategy with operational cost structures within manufacturing cost management models, emphasizing its critical role in enhancing both financial performance and operational efficiency. Through a comprehensive review of theoretical foundations, the study examines key financial planning, budgeting, and capital allocation concepts alongside detailed operational cost components, including fixed, variable, and semi-variable costs. It critiques traditional cost management frameworks and advocates for an integrative approach supported by modern ERP systems and Activity-Based Costing tools. Empirical evidence from industry case studies and quantitative analyses underscores the tangible benefits of this integration, including improved profitability, cost control, and strategic agility. The paper also highlights best practices and lessons learned from practical implementations, offering valuable insights for manufacturing managers and financial planners. Finally, it identifies gaps for future research, particularly regarding emerging technologies and sector-specific adaptations, aiming to advance both academic knowledge and practical applications in manufacturing cost management.
Institutions: Kwara State University, United Utilities (United Kingdom)
Language: English
Subfield: Accounting
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W4411357118