Essay on The Objectives Of Cost Management

Essay on The Objectives Of Cost Management

Length: 790 words (2.3 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

II. OBJECTIVES OF COST MANAGEMENT
The objective of cost management is
• To reduce the cost expended by an organization while strengthening the strategic position of the firm.
• To identify future expenditure in a business to reduce budget overages.
• Tackle challenging task in business management, to reduce construction delays.
• To improve pricing decision.

IMPORTANCE OF COST MANAGEMENT :-
• It helps to finish project on time & in given budget.
• It also helps to analyse expected cost to control project expenses.
• Cost management tackle challenging task in business management, to reduce construction delays.
• It improves pricing decision.
• Cost management link corporate strategies.
• It evaluate the effectiveness of activities for investment.
• The ability to predict a project’s future expenses and costs.
• The maintenance of a central record of all predicted expenses and costs.
• The ability to ensure that costs are approved before purchases are made.
• The ability to control project expenses.
• Ability to evaluate source of cost.

III. LITERATURE REVIEW
MahanimHanid, LauriKoskela Mohan Siriwardena [1]
This paper provides an overview of the state of research in the fields of construction cost management. It is noted that waste is an important issue that needs to be tackled in construction cost management. This is so because waste is considered as illogical from an economic point of view and it needs to be better managed, reduced or ideally resolved. Waste is seen as uses of resources that do not involve transformation or generating value for the customer.
Failure to overcome waste in the construction cost management system will weaken system. There is scope for further research to improve the traditional cost management ...


... middle of paper ...


...oposes some guidelines for improving cost control such guidelines involve the integrated application of operational cost, estimating, target costing of S-Curves. It is argued that traditional management has been identified as infective mainly for the fact that it does not take into consideration the production processes involved, due to conceptual base on which these are founded.
This can integrated application of operational cost estimating. S-Curves and target costing has been outlined aiming to improve cost management will become proactive and able to deal with the dynamic, uncertain and complex construction environment that exists in many projects. Besides the utility of the information that is produced the implementation of the tools can also benefits production management by increasing process temporary revealing some problems related to the firm organization.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay on Inventory Management And The Objectives Of Good Inventory

- The first and one of the most important concepts in this case to understand is inventory management and the objectives of good inventory management . Inventory management can be defined as “the practice of overseeing and controlling the quantities of finished products for sale” (“Inventory Management,” n.d.). Thus, in relation to this case, inventory management is the practice of overseeing and controlling the various amounts of food and drinks for sale. Good inventory management is crucial for the overall success of Wegman’s and every other business entity’s operations....   [tags: Inventory, Costs, Cost, Management]

Better Essays
829 words (2.4 pages)

Questions On Cost Management And Management Essay

- Eduardo Carrillo 8/27/15 Cost Accounting Chapter 1 & 2 Discussion Questions 1. Cost management can be described as controlling and planning the business’ money. It differs from management accounting because of three objectives that the management accounting has. They are costing services, products and other objects. Planning and control and finally decision making. 2. In financial accounting it focuses on producing for external users when the cost management focuses on internal users....   [tags: Cost accounting, Cost, Management accounting]

Better Essays
1081 words (3.1 pages)

The Objectives Of Project Risk Management Essay

- All projects have risks.It is the duty of the project manager to manage these risks and prevent them from ruining the project.If risks are not managed well the project may end up at a high risk of completing within the budget,the scheduled time or even meeting the required standards.Management of risks in a project involves identifying and analysing possible risks and finding the best ways of controlling them. The objectives of project risk management is to minimize the likelihood and effects of negative events in a project.Proper risk management increases the chances of project success.A project risk can either be positive or negative.A positive risk refers to the positive outcome that ma...   [tags: Project management, Risk management, Management]

Better Essays
1348 words (3.9 pages)

Importance Of The Three Prime Objectives Essay

- Importance of the Three Prime Objectives As companies gain the knowledge of project management strategies and methodologies, and how these strategies increase the success rate of projects, it is important for the companies and their project leads to understand the most valuable strategies for managing the three prime objectives or triple constraints of projects. The challenge of every project is to complete the assigned work successfully within the projects set constraints. All projects have common general objectives also known as the project triple constraints; scope, time and cost....   [tags: Project management, Management, Project]

Better Essays
738 words (2.1 pages)

Essay on The Cost Of The Ink Bought

- The numbers from the above table correspond to the working notes below. Working notes: 1) As the production manager sees no alternative use for the paper, this means that it would not be replaced; as a result scraping the earnings made from stock - £5000. 2) The full cost of the ink bought must be charged to the cost of the leaflets, due to the surplus ink being inaccessible - in terms of not being able to be sold or used. 3) The staff (direct) are presently employed, which means the cost of their wages are reclaimed from the consumer....   [tags: Costs, Cost, Variable cost, Economics]

Better Essays
991 words (2.8 pages)

Vendor Management Systems Should Provide The Following Objectives Essay

- Vendor Management: In order to run the business more efficient and effectively, all the process and systems to be integrated to the extent possible. Business can’t run in isolation and better way is to look things different. Automation is bring a lot of changes and the way it is driving the economy is changing drastically and we need to embrace this change to sustain in the industry. Any vendor management systems should provide the following objectives 1. Processing the day to day activities in very efficient manner 2. Helps in decision making for all the users as when required 3. Immediate availability of Information 4. To understand the financial viability of the business....   [tags: Management, Process management, Marketing]

Better Essays
985 words (2.8 pages)

Value Management : Project Management Essay

- 2.3. EARNED VALUE MANAGEMENT: EVM control the projects, yet dependent on a project’s effective plans. About EVM we know collectively from these research works. Firstly EVM contributes to project planning then secondly EVM contributes to project control and EVM contribution to project management processes, all these processes are believed to positively influence project performance. This is a EVM contribution to project success. The concept of earned value has been around for over a hundred years....   [tags: Project management, Earned value management]

Better Essays
760 words (2.2 pages)

Importance Of Accurate Cost Allocation Essay

- 1. The importance of accurate cost allocation is an essential component to the manufacturing process. Explain the types of problems companies encounter during the allocation process, include specific examples as part of your answer. There are problems that accrue when costs are allocated. - Uncontrollable allocations consistent with responsibility accounting. But, only costs for which the individual manager has control. - Arbitrary allocation that It is impossible to determine what to allocate and this requires long and serious management discussions....   [tags: Costs, Variable cost, Decision making, Cost]

Better Essays
1058 words (3 pages)

Project Risk Management : Project Management Essay

- This paper will reflect on the different uses of Project Risk Management and ways in which it can benefit organizations to have the ability to identify potential problems prior to the problem occurring. Risk, this is not something to be taken lightly whilst dealing with matters that include high end projects meeting specific details, deadlines and expectations for the end client. Project risk management teaches one to be aggressive early on in the phases of planning and implementing the tools for a project....   [tags: Project management, Risk management, Management]

Better Essays
1157 words (3.3 pages)

Essay about Management: Planning Objectives

- There are basic steps that can help managers in their planning. Allen (2013) describes these steps. First management must set objectives. Create both short and long term targets. During this phase the operating and middle management set their attention to personal, departments and divisions. The objectives are obtained come from the mission statement which describes their mission and values. They also come from other factors, like the standing planning, strategic planning and goals, resources, environmental conditions, ethics, and experience....   [tags: factors, issues, alternatives]

Better Essays
944 words (2.7 pages)