1- Establishing systems for strategic cost management and pricing, which include the following:

1.1 Standard Costing Systems
• Providing an accurate view of service costs.
• Calculating the standard consumption rate for each product (raw materials – time)
• Determining cost allocation policies and loading rates.
• Use the latest costing systems, such as T.D.A.B.C.
• Apply the latest target costing systems

3-1 Cost Control Systems

• Monitor cost elements at each operational/production stage

5-1  Sensitivity and Variance Analysis

5-1  Sensitivity and Variance Analysis

2- Purchasing and Inventory Systems and Control Systems for Each:

1-2 Purchasing and Inventory Systems
• Document cycle (paper and electronic).
• Preparing an implementation manual.
• Preparing a supplier receipts manual in both Arabic and English.
2-2 Purchasing and Warehouse Control Systems
• Documentation cycle (paper and electronic).
• Preparing an implementation manual.
• Preparing a model for analyzing deviations from planned systems (quantity and value).
3-2 Internal Reporting Systems
• Preparing periodic monitoring and feedback reports to promote continuous improvement.

3- Establishing periodic and special reporting systems

1-3 Periodic Reporting Systems
a. Reports by Management Level:
• Reports to shareholders and senior management.
• Reports to executive management and other departments.
• Reports to departments and operational and production supervisors.
b. Reports by Periodicity:
• Monthly and quarterly reports.
• Weekly and monthly reports.
• Daily and weekly reports.
2-3 Special Reporting Systems
• Preparing reports to support strategic decision-making and measure their impact on profitability at the departmental, service, and product levels, as well as at the company level as a whole.
• Example: Crisis management reports and impact assessment.
Implementation steps:
• Designing templates: Measuring report quality through its support for decisions, while balancing detail, timeliness of presentation, and accuracy of content.
• Pilot implementation.
• Final implementation.
• Preparing a policy and procedure manual detailing responsibilities and confidentiality of presentation.

4- Supporting financial management for management accounting purposes

• Example:
  • Chart of accounts: Alignment with the cost center tree.
  • Accounting guidelines: Alignment with strategic cost analysis purposes.
  • Systems for implementing accounting and auditing, their periodicity, and schedule.
  • Internal reporting systems: Policies, procedures, and degree of detail.
  • Improving output efficiency: Supporting the accuracy of information to align with target systems.

5- Preparing operating budgets

• What is the importance of the operating budget?

  • The operating budget is a company-wide roadmap, providing a clear vision of targeted profits during the planned period, both at the level of general business results and through detailed methods for achieving these goals. These dimensions include:

    •  At the level of departments and divisions.

    • At the item level (products or services).

    • Weekly, monthly, quarterly, or semi-annually.

• The budget provides a clear vision of the anticipated steps before implementation begins. It requires studying the expected impact on the targeted profitability and identifying the necessary steps in detail. It also includes a plan that illustrates the expected impact to ensure optimal utilization of available resources.

  • Components of the Operating Budget
    • The operating budget includes:
    o Optimal selection of the sales mix.
    o Determining target profits at the item, department, and company levels.
    o Making feedback decisions to ensure optimal utilization of expenditures.
    o Reducing waste levels while determining the optimal time for decision-making and implementation.

1-Supporting the implementation of global ERP systems (e.g., SAP or Oracle “Implementation Support”)

• Whether by:
  1-Developing an existing ERP system
  2-Building and implementing a new ERP system
  3-Creating a dedicated cost unit (Access or Excel)