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cost accounting information is the reference for the purchasing men that enables them to decide:
1- Volume of purchasethey can afford for
2- Best payement facilitiesterms matching their cost .
Cost control is one of the key factors ensuring the financial efficiency. The financial result, despite the simple formula for its calculation, in fact, is a very difficult value to determine. Further difficulties associated with the proper measurement of financial results occur especially in a dynamically changing business environment (Białas, 2011). Collection of accurate and adequate information on costs is a key element in the management process both considering the separate company as well as inter-organizational dimension of management. More and more managers are aware of the fact that effectiveness is a source of competitive advantage and are trying to improve and develop the methods of analysis and management of costs and processes. An area where it is possible to achieve significant cost savings is supply chain. Cost reduction is one of the most frequently mentioned goals in supply chain management. In addition, efforts to reduce costs are forcing companies to focus increased attention on the relationships with other participants within the supply chain, so that both suppliers and customers are able to improve the competitiveness and profitability. In response to these realities the literature on the subject lists the specific concepts of cost management within the supply chain, as shown in table1. Tab. 1 – Concepts of cost management of supply chain. Source: Seuring, Goldbach, 2002. Concept Characteristics Supply Chain Costing Three cost levels need to be analyzed: direct, activity-based, and transactions cost to account for all costs in a supply chain and find the right partner to control them. Proactive Cost Management Proactive cost management is a market oriented, anticipatory system. Specific techniques are used to coordinate activities, as a case study from the car industry shows. Lean Management Accounting Linking strategic and operational levels to understand customers and processes, and thus enhance customer value. A case study from car sales offers details. Interorganizational Cost Management Managing supplier and customer costs in coordinated cost reduction programs are carried out during product design and manufacturing. Organizational Settings Cost Management has a functional and an institutional dimension. Principal-agentrelationships are important in the application of cost management in a supply chain.
