Since the mid-1980s management accounting practitioners and academics have sought to modify and implement new techniques that are relevant to today's environment which will ensure that management accounting regains its relevance. There have been remarkable innovations in management accounting especially in the speed with which the new concepts have become widely known, accepted, and implemented (Kaplan, 1994a).

Strategic cost management highlights enhanced cost measurement systems, paving the way for management accounting to retain its relevance in today's environment. Strategic cost management consists of those actions taken by managers to concurrently reduce cost as well as enhance customer satisfaction with the aid of modified / new approaches and techniques in managing cost more effectively / strategically (Drury, 2012)

Required:

(i) Identify and describe ONE (1) strategic cost management approach that has become widely known, accepted and implemented; and

(ii) Demonstrate how it has spearheaded innovations in management accounting.

(ii) Use a real life case(s) to support your discussion.