The Principles of Cost Minimization: A Brief Review

Abstract

The duty of cost minimization and control is to guide, regulate, or exert a directing influence. It is sensible only to the extent that it does not impede accomplishment of the desired task. Measurement of accomplishment of a specific activity is not always susceptible of precise numerical expressions; the final success of an activity must be determined by managerial decision. Cost management involves constant measurement of costs on the one hand and the appraisal of aims and results on the other hand. This usually involves fine balancing of sacrifice and achievement. Cost data can suitably assist in shaping decisions even though it rarely provides a complete answer.