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Xinyun Wei

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Open access Aug 2026

Knowledge-Based Strategic Cost Management

This study proposes a knowledge-based strategic cost management model integrating goal programming (GP) and accounting indicators to improve managerial decision-making in complex and competitive business environments. As global competition intensifies and cost structures become more intricate, organizations require decision support tools that treat cost not only as a control variable but also as a strategic performance driver. The model combines accounting indicators, including cost variances, activity-based costing, overhead allocation, and efficiency ratios, with GP to address multiple and conflicting cost-related objectives under operational and financial constraints. By integrating quantitative accounting data with qualitative managerial knowledge, organizational priorities, and experiential insights, the framework supports transparent and informed decision-making. Experimental findings indicate cost reductions of up to 18%, resource utilization exceeding 90%, and significantly lower deviations compared to traditional methods.

Xinyun Wei · 0 citations