ANALYSIS OF STRATEGIC COST MANAGEMENT ASSISTING IN DECISION MAKING

Abstract

This work presents a study on the cost formation process of a third-party service provider from the Federal Public Administration to draw a parallel with the strategic cost management using the absorption and variable costing methods. As a methodology, a qualitative-quantitative research strategy, of an applied nature, was used, through a case study in a company that provides cleaning, conservation, and sanitation services. Data on 13 types of inputs (the highest values) were analyzed over six months. The values were highlighted referring to the input data of the Bidding Notice that led to the contracting of the service provider company, the inputs consumed by the client, and the inputs purchased by the company. The results of the study indicate that the company bought twice as much (119%) than the amount foreseen in the notice on the analyzed period. Using the precepts of Strategic Cost Management, in parallel with the absorption and variable costing methods, it can be observed that in terms of making managerial decisions, the second (variable costing) forwards more critical information to the manager than the first ( absorption costing), resulting from the concern of complying with Brazilian tax legislation, without considering the inherent tax costs (not only) in the operational structure of the type of service object in this study.