Author(s): Wadesango N, Charles Mahwahwa, Sitsha, L and Malatji S.K
The purpose of this desktop study was to identify the innovative competitive strategies that management accounting practices can provide while creating a competitive environment in the funeral assurance industry. An important aspect that was highlighted in this discussion was the notion that management accounting techniques play an important function in creating a sustainable competitive advantage for an organisation. This paper analysed literature in an effort to assess the impact of corporate strategies to create sustainability and competitive advantage and continuously improve organisational performance and creating shareholder wealth. Findings indicate that the application of customer profitability accounting and the competitors’ profitability accounting were the major influences at Funeral Assurance Companies in the adoption of strategic management accounting techniques. It is recommended that funeral assurance companies establish resting units (caskets/coffins) manufacturing business units to compete on pricing instead of outsourcing as is the current position with most firms. The resting unit and fuel costs constitute the major cost components in honouring claims.