Cost management: Difference between revisions

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+#REDIRECT [[Cost accounting]]
-'''Cost management''' is the process whereby companies use [[cost accounting]] to report  or control the various costs of doing business.
-The term CM is widely used in business today. Unfortunately there is no uniform definition. We use CM to describe the approaches and activities of managers in short run and long run planning and control decisions that increase value for customers and lower costs of products and services. For example, managers make decisions regarding the amount and kind of material being used, changes of plant processes, and changes in product designs. Information from accounting systems helps managers make such decisions, but the information and the accounting systems themselves are not cost management.
-Cost management has a broad focus. It includes – but is not confined to – the continuous reduction of costs. The planning and control of costs is usually inextricably linked with revenue and profit planning. For instance, to enhance revenues and profits, managers often deliberately incur additional costs for advertising and product modifications.
-Cost management is not practiced in isolation. It’s an integral part of general management strategies and their implementation. Examples include programmes that enhance customer satisfaction and quality as well as programmes that promote blockbuster new product development.
-{{accounting-stub}}