Cost Management

D

dimpy.handa

Dimpy Handa
Cost management is the process whereby companies use cost accounting to report or control the various costs of doing business.
Internal control it is the device which assures the mastery of the piloting and the performances of the company. Control interns been a part of the usual life of the company. The vocation of the company being the creation of wealth measured by the profit the search for earnings productivity and for efficiency is a part of its activity. But up to here the internal device was strongly dependent on the expertise external.

Besides, before governmental measures 2002/2003, internal control was confused with the management control. If one judges it by certain reactions some believe that it is always case.


I- Problem and definition of terms
Usually internal control declines in terms of strategy, management and exploitation. One distinguishes so strategic control, management control and control of the exploitation.
 
The cost management process will help you to:
Identify each of the costs within your project
Ensure that expenses are approved before purchasing
Keep a central record of all costs incurred
Control the overall cost of your project

This will help you control expenses within an organisation.
 
Cost measurement is the key to manage costs. Good practice in Total cost management, involves accounting and applying cost information to provide relevant cost and performance measurement with an objective of enabling organizations to deliver increased value to customers

Cost measurement also facilitates better understanding of application of resources in the activities, behavior of products / processes and ultimately the profitability achieved

TCM tools can be applied to achieve the objective of cost management through precise cost measurement
 
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