Cost management involves long-term and short-term decisions that attempt to increase value for customers and lower costs of products or services.

Question

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Cost management strategies are designed to find ways to increase the value that customers receive while keeping the costs of producing goods or services as low as possible. This involves making both short-term decisions, such as reducing expenses or negotiating better prices with suppliers, as well as long-term decisions, such as investing in research and development or building more efficient production facilities. By managing costs effectively, companies can improve their profitability and competitiveness in the marketplace.

Cost Management Involves Long-Term and Short-Term Decisions That Attempt to Increase