Cost Management – Part 1

This is my first post as I begin Accounting 3210 – Cost Accounting at Tennessee Tech.  I truly belive this class will provide some very valuable insight for application at Faith Promise.  Cost management is all about creating more value at lower costs.  Sounds like something we could all learn more about.  It is so easy to get caught up in the urgent needs of an organization and lose track of the opportunity for strategic cost management.  The reason you want to increase value and decrease costs is that you can then use the unused funds for additional value added purchases.  

Another reason to improve cost management processes is to identify your strengths and weaknesses.  Cost data can show you where you do the best at utilizing funds and where you waste the most funds.  This information can help you make better strategic purchasing decisions and ensure your spending patterns are in line with your budget.  Cost management isn’t just about saving money, but is about creating value through making better decisions on a small scale and a large scale.  I know that I can do a much better job managing costs at Faith Promise and I look forward to implementing some value creating processes.