Cost Management as a Decision-Making Tool for Managers in the Global Competitive Environment

Halis Kalmış

Assistant Professor, Faculty of Biga Economics and Management Science
Çanakkale Onsekiz Mart University, Biga/Ç.kale, TURKEY
hkalmis@mynet.com

Abstract

Competitiveness is the capability of business to gain and sustain a competitive advantage against all competitors by serving a targeted group of buyers in a market and earning superior financial returns. Accelerating globalizm event and as a result of this, increasing the global competition has forced businesses to think and act on a global dimension. Primary condition of competitiveness in the global competitive environment is effectively and efficiently to accomplish the components such as high quality, low cost and speed that acquire competitive advantage to businesses according to customers' needs. To achieve their objective, they should effectively and efficiently manage the activities which are performed to procure, produce and dispose of products and services. The effective way of managing the activities is to determine activities and their cost and income, and to measure their performance, and to plan and to control these in cost-effective way. The tool for enabling them is cost management. The aim of this study is to indicate how to gain and sustain a competitive advantage in the global competitive environment by applying a contemporary cost management system in a business.