Introduction

Cost Management: A Strategic Approach to Business Success

In today's competitive business environment, companies must not only control costs but actively reduce them while continuously improving quality and productivity. Cost management has become a critical function, encompassing planning and controlling costs to ensure customer satisfaction and long-term business competitiveness.

Defining Cost Management

According to Horngren, cost management describes the approaches and activities managers use in short-term and long-term planning and control decisions. The core objective is to increase value for customers while simultaneously lowering the costs of products and services. This requires a proactive and strategic approach to resource allocation and expenditure.