Inter organizational Cost Management: Its concepts, practices, and antecedents

Subject Areas : Management Accounting

فریدون رهنمای رودپشتی ¹ (نویسنده مسئول و طرف مکاتبه)
رضا غلامی جمکرانی ² (ندارد)

Received: 2011-04-21 Accepted : 2011-07-27 Published : 2011-09-23

Keywords: inter organizational cost mana, internal cost&#x0D, &#x0D, management(ICM, Value Chain,

Abstract :

Management of costs that cross organizational boundaries is important because ofusing of agile production system and outsourcing have increased. Inter organizationalcost management (IOCM) has been used by organizations to achieve the collaborativemanagement of costs throughout the value chain. The purpose of this paper is todefine the subjective literature of IOCM, practices, techniques, several constructs thatmay affect IOCM, and the benefits that result from its use. IOCM refers to a set ofactivities, processes, or techniques that managers can use to manage costs that spanorganizational boundaries. Inter organizational target costing, inter organizationalkaizen costing, open book accounting, and information sharing are IOCM practices.Internal cost management, absorptive capacity, and electronic integration are threeimportant capabilities to use IOCM. The results of study show that IOCM has thepotential to improve the overall performance of each firm in the value chain.