Cost Management in the Contemporary Business Environment

• Main Author: Matviienko R.
• Format: Article
• Language: English
• Published: Mykolayiv National Agrarian University 2019-09-01
• Series: Modern Economics
• Subjects: cost management; strategic cost management; contemporary business environment
• Online Access: https://modecon.mnau.edu.ua/issue/16-2019/matviienko.pdf

Understanding of cost behaviour is of great significance not only for cost management but also for managers to make strategic and tactical decisions across the entire spectrum of business operations, which would at last lead to overall business performance improvement. The increasingly competitive business environment has imposed the need that costs should be managed in a more sophisticated way than they were earlier. Throughout its history, cost management went through numerous models, tools, and techniques. The contemporary business environment imposes the need for strategic cost management, which is the application of cost management techniques so that they simultaneously improve the strategic position of a company and reduce costs. The increasing pressure of global competition, technological innovation, and changes in business processes have made cost management much more critical and more dynamic than ever before. The paper is going to stress the necessity of cost management and especially strategic cost management in contemporary business environment.