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 
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.
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