CGMA cost transformation model
The CGMA cost transformation model provides a structured framework of six key principles for achieving cost competitiveness and operational efficiency. Understanding these principles—from building a cost-conscious culture to identifying and managing cost drivers—enables finance professionals to make strategic decisions that improve profitability while supporting sustainable business growth.
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In this lesson
- 0:00 Introduction to CGMA Cost Transformation
- 0:54 Principle 1: Cost-Conscious Culture
- 1:41 Principle 2: Managing Cost Risks
- 3:08 Principle 3: Products and Profitability
- 4:01 Principle 4: Value Through New Products
- 5:21 Principle 5: Sustainability and Profits
- 6:32 Principle 6: Understanding Cost Drivers
- 7:48 Practical Example Analysis
- 10:41 Course Recap and Summary
About this lesson
Dive into the essentials of the CGMA cost transformation model, a comprehensive framework designed by the AICPA to guide businesses towards achieving cost competitiveness through six key principles. From fostering a cost-conscious culture among employees to understanding and managing cost drivers, this video offers invaluable insights into optimising profitability and sustainability in your operations. Learn practical strategies for each principle's application, illustrated with real-world examples like the operations improvement at McKinstry PLC. Unlock the secrets to cost efficiency and make informed decisions that bolster your bottom line. Watch now to transform your approach to cost management.
Duration: 13m
- CGMA cost transformation framework
- Cost-conscious organisational culture
- Cost risk management and mitigation
- Product profitability analysis
- Innovation and new product value creation
- Cost drivers and operational leverage
Transcript
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