Cost management : a strategic emphasis, emphasizes the role of cost management information in each of the four management functions. Each cost management method is clearly linked not only the firm’s overall strategy but also to each management function that uses the method : strategic management, planning and decision making, product costing, operational control and management control.
Cost management is important to organizations because it is more than measuring and reporting cost that have occurred. Focused on the future impacts of current or proposed decisions. Cost management is a philosophy, an attitude, and a set of techniques to create more value at lower cost.