A Review on Value Chain Analysis as a Strategic Cost Management Tool

Strategic Cost Management is a stratum of cost accounting that has been a decisive area of decision making in the corporate houses now-a-days. Cost controlling and reduction are the vital areas of discussions in any corporate organizations. The key idea of this literature is to intensify the understanding of value concept and to elucidate the position of value to generate a chain that endow with a fundamental structure for the development of goods or services in an industry. The thought of value under value chain analysis is versatile and intricate. The study has been divided into different parts including a brief on Value Chain Analysis followed by the Primary and Secondary activities involved in the chain. The Technology involved in primary activities has been elucidated. Further, the activities of Competitive Advantage including the Cost advantage and Differentiation have been explained followed by the Linkages, and Interrelationships, existing system’s Accounting challenges to Value Chain Analyses and Outsourcing and the Value Chain System as a whole. The study concludes with select Value Chain cases snippets.