Uray Shafa Afrilia

B1024201041

Lab CA

Cost Management Is Narrowly Focused On Continuous Cost

Reduction.

I don’t agree with that statement because A good cost accounting system is narrowly
focused o a continuous reduction of costs. For best results, cost management emphasizes
independently coordinating supply chain activities within your company and not interfering
with other companies. Cost management is the process of estimating, allocating, and
controlling project costs. Cost management is concerned with the process of finding the right
project and carrying out the project the right way. It includes activities such as planning,
estimating, budgeting, financing, funding, managing, controlling, and benchmarking costs so
that the project can be completed within time and the approved budget and the project
performance could be improved in time.

Cost management covers the full life cycle of a project from the initial planning phase
towards measuring the actual cost performance and project completion.The cost management
process allows a business to predict future expenses to reduce the chances of budget overrun.
Projected costs are calculated during the planning phase of a project and must be approved
before work begins. As the project plan is executed, expenses are documented and tracked,
so things stay within the cost management plan. Once the project is completed, predicted
costs and actual costs are compared, providing benchmarks for future cost management plans
and project budgets. Project managers should not underestimate the business advantages of
effective cost management.

Project managers are responsible for cost project management. As part of their role,
they must estimate total costs, plan the budget, monitor spend, and prepare for potential risks.
A project manager must remain vigilant throughout the cost management process to ensure
they stay within budget and improve profitability. Many tools can aid cost management in
project management. The best option is to choose a versatile project management platform
with a variety of tools so that you can tailor the software to your specific project needs.
 All Strategies Should Be Evaluated Regarding The Resources And Capabilities Of
The Company.

The statement it’s true because Resources is a productive input or competitive asset
that is owned or controlled by a company while Capabilities Is the capacity of a firm to
perform some activity proficiently. Resources and Capabilities is a study about the potential
of a company. Instead of focusing on its results, it highlights the tools and internal
opportunities a company could use for maximizing its outcome. There are four most common
areas used to analyze a company: strengths, weakness, opportunity, and threats (SWOT).
Carrying out a SWOT analysis on a company makes it possible to evaluate the progress that
the company is making. The Steps Involved in SWOT Analysis: Identify the Four
Components of SWOT, Draw Conclusions, and Translate Implications into Strategic Actions.

When you see a company as a vehicle for creating value for its customers, you need to
carefully analyze its strengths and weaknesses. This is commonly referred to as internal
analysis. It relates to the assessment of an organization's resources and capabilities in the
context of value creation opportunities and other external events. Resources are the assets,
knowledge and skills of an organization. Opportunities can be defined as an organization's
ability to use resources effectively. In the past decade, the view that an organization`s
resources and capabilities are the drivers of an organization`s strategic opportunities in the
marketplace has received increasing support. This ResourceBased View of the firm argues
that competitive advantage is to a large extent determined by the uniqueness of the
organization`s resources and capabilities. Roads to future advantage can be found by
identifying unique opportunities to exploit these resources in current and new markets.

This contrasts with the more traditional contingency approach, which states that
organizations must adapt strategically to a changing environment. The two perspectives
appear to complement each other, although one may be more appropriate than the other
depending on your organization's goals and circumstances. If an organization is unable to
systematically evaluate and identify its unique resources and opportunities to use it, there
will be little mainstream influence in the market. Such organizations are less likely to be
among those who make unique and creative contributions to the market.