Strategic cost management book vijay govindarajan biography

Chapter 1

AN INTRODUCTION TO STRATEGIC COST MANAGEMENT

New Wine, or Just New Bottles ?

This book represents a new emphasis in managerial accounting.

It is based on the premise that managerial accounting must explicitly consider strategic issues and concerns. We believe that the incorporation of strategic concerns into cost analysis represents a very natural, overdue extension of managerial accounting, which itself only became popular about thirty years ago.

NEW WINE?

In 1963 Sidney Davidson wrote a paper for the Accounting Review marking the fortieth anniversary of the publication of J.

M. Clark's book, Studies in the Economics of Overhead Costs. Davidson titled his retrospective of Clark's book "Old Wine into New Bottles." Davidson's paper acknowledge Clark's contributions to the development of relevant cost analysis -- one of the "new bottles" of managerial accounting in 1963.

Though times change, this metaphor remains apt. Are the new i