Cost & Price Management

Cost and price management is the process of planning and controlling the budget of a business. Cost management is a form of management accounting that allows a busi- ness to predict impending expenditures to help reduce the chance of going over budget. Many businesses employ cost management plans for specific projects, as well as for the over-all business model. When applying it to a project, expected costs are calculated while the project is still in the planning period and are approved beforehand. We discussed this in the book.