[kɑst ˈmænəʤmənt ˈsɪstəm]
Definition: is the process of purposeful formation of costs by their types, places, and carriers with constant monitoring and stimulation of their reduction. Cost management is the sphere of activity of managers, which is aimed at achieving a high economic result. Specifics can be considered a merger of independent knowledge about the activities of the company and the reflection of this knowledge on the production chain: the final indicator - the production process - income.
Cost management system in a sentence:
- The objectives of the cost management system are considered in the organization's objectives framework.
- The main functions of the cost management system are forecasting and planning, accounting, monitoring, coordination and regulation, and cost analysis.
Synonyms and related words: financial management, financial reporting
