Publication Details
Abstract
This Research investigates whether the cost analysis technique based on customer's perceived value can be utilized as a management tool for the General Company for Food Products to improve the level of CSFs thus presenting a better image of the company. The study is based on the premise that traditional resources allocation may not represent customer priorities and this could cause perceived value gaps and poor strategic performance. In order to achieve this purpuse, mixed methods was used, consisting of qualitative interviews with the managers of each department, and a quantitative survey to a customer sample to determine which elements are the most valuable from their perspective. A value gap was also analyzed between the actual practices and expenses of the firm and the value that the customer associates with those practices.The findings reveal significant divergences between costs related to specific internal processes and the importance attributed by the clients to those processes. The use of CPVA Technique has allowed resources to be shifted to high value activities for the customer, which has resulted in operational efficiency enhancement, competitiveness enhancement of the company, and support to the achievement of vital success factors including: customer satisfaction, elimination of non-value added cost. The study suggests that value-based thinking ought to be applied in cost management and integration between strategic marketing and accounting functions should be encouraged to render more effective responses to customer needs.