WHAT IS COST MANAGEMENT | MEANING |CHARACTERISTICS | COMPONENTS AND PURPOSE

Cost
management
are those calculated activities that an organization
performs in the bid to reducing cost. Traditional management accounting system has been accused of being a cost
containment process whereby managers of divisions work towards meeting the
standards as contained in the budget. Inherent wastages and inefficiencies that
are within are traditional cost processes are encourage if the sole aim of all
leaders in an organization is to ensure that budgets are strictly adhered to. This
is an ugly and regrettable situation that still exists in businesses, even in
this modern day and age. It is believed that one of the reasons for this wasteful
attitude of managers is the fact that l lot of managers are not well grounded
in the art of cost management techniques. Hence, this article is written to
explain what cost management is, distinguish cost management from cost and
management accounting, state and briefly explain the features and
characteristics of quality cost management system.

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