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Tag: Cost management

Cost management is key to business profitability

Cost management is key to business profitability

Business
An understanding of cost behavior not only helps cost management as such but also supports strategic and tactical decision-making across the entire spectrum of business operations. Projects, processes and regular operations can all benefit from cost management, leading to overall business performance improvement. Cost Analysis for Decision Support Information When cost accounting started during the industrialization era, the emphasis was on finding the direct costs of making a product or providing a service to help in setting prices. Establishment costs such as rent and administrative expenses tended to be ignored and had to be recovered through the high margins in the selling prices. Emphasis then turned to ascertaining the "full" cost of producing something. Complex and labo...