Strategic management of costs

Abstract

Cost is often the most mysterious area of business. Rather than viewing cost as an existing monolith, management must instead see it as a consciously chosen investment selected to achieve a specific revenue stream. In addition to redefining cost in a way that makes proactive management possible, it is important to make a distinction between efficiency and effectiveness. Efficiency involves doing things quickly and well, while effectiveness involves doing the things that optimize the results of an organization's overall activities.

Citation

Hosking, G. (1993), "Strategic management of costs", Planning Review, Vol. 21 No. 5, pp. 51-56. https://doi.org/10.1108/eb054441