Cost Management and Control

Nowadays, the issue on climate change and other environmental issues has been rampant
in the society since it creates unfavourable adverse impacts. With this, people and even some
industries are initiating actions which could gradually minimize the causes that triggers such
reaction in nature and, methods which could further benefit the world that we are currently living
in. Certainly, all people and even companies have all the means to help in this issue, unless, they
lack the drive to care for the environment. With this, as a cost accountant, I would effectively use
my knowledge and skills in cost management in control to address these matters. First thing, I
would assess first the past performances of the company by carefully examining its costs in its
management. With such information, I could allocate what costs are needed to modify and plan
strategies which could reduce the costs of the company, but still, the outputs and objectives of
the company for profitability are being met. Also, I would keenly evaluate the accounting
standards utilized since this could also serve as an instrument in a wise management of the prime
and conversion costs and how to efficiently apply cost accounting methods that shall benefit the
flow of production and, keep the environment clean. With this, I would provide them with
transparent, accurate and reliable cost information that shall shape and aid the companies’ overall
performance, which is cost effective and environment friendly.

Also, for every company, imperfections within production are inevitable and other market
factors, which leads to having variances within the spending and volume of inputs and outputs.
But having large value of unfavourable variances denotes counterproductive handling of
expenses and managing of the supplies. With this, as a cost accountant, for instance, I would
effectively estimate the expenses of the direct materials and propose to purchase cheaper and
environment friendly yet good quality materials to decline cost and to reduce waste through proper
handling during the conversion process. Also, through variance analysis, I would be able to lend
a hand for the managers in investigating what factors have cause such variances to be not within
the acceptance range. To add, activity drivers, like machines and computers, should be efficiently
used to conserve energy. Basically, through activity-based costing, it would help me wisely
allocate time, money and materials consumed in the business.

As I have mentioned above, those were the plans to help address such environmental
issues. The next thing that I would do is to implement and take some corrective action plans or
simply, take control of what is being planned that aims both of greater good of industries and of
the environment. With this, as a cost accountant, after determining the possible costs that possibly
triggers climate change and other environmental issues, I would apply some modification with the
costing system. I would always assure that my estimations and my rendered cost information
would not lead to any distortion or errors since this could affect the way managers would decide
for the company’s management.

Indeed, I could be the instrument of foundation to minimize damaging practices of industries.

With this, my drive of applying ethical behaviours in my profession would be one of the keys to
contribute in saving our planet. And I would keep this internal drive to be resilient in creating a
positive impact since Earth is the best supplier of all humankind and institutions. Therefore, proper
management and control of my physical and mental assets would be the payment or remedy of
our liabilities on this planet.