Cost Management

1
 Content

1. Cover page

2. Executive Summary

3. Aim/s of the investigation

4. Introduction of the topic

5. Significance of this investigation

6. Listing and describe the available software

7. Software Selection for evaluation (at least 3 to be selected)

8. Critically Review the selected three Software's

9. Identify and set Criteria for Evaluation

10. Discussion on Weighting for each criteria

11. Set up Evaluation Matrix

12. justification of weighting criteria for each software ( clear evidence and comparison. required]

13. Discussion and the results

14. Discussion of Problems and Pitfalls

15. Recommendation/s

16. References

17. Appendix: Provide all supporting evidence for each software evaluated.

2
2. Executive Summary

In today's competitive world, cutting production costs has become a top priority for businesses, and the survival
triangle (cost, quality, and time) is a tool that helps businesses focus on these three aspects and compete with other
businesses. The first step in this process is cost management, which gives solutions and advice to managers who
require assistance obtaining an accurate cost estimate and controlling expenditures within the expected budget. The
major goal of this study is to assess the link between information technology, project cost management, and other
departments from the perspective of Mercedes executives and in my function as head of the company's information
technology department (Ala-addini, Daqayeqi, 2008).

3. Aim/s of the investigation

The IT management project must include all company operations, including cost management, and the information
systems that support these operations must be seamlessly integrated in order to obtain maximum efficiency and
effectiveness. The aim of the research is to identify the cost management in Mercedes company and the role of
information technology to support the company's operations in addition to project planning and control.

3
4. Introduction of the topic

According to Barfield, Raiborn, and Kinney (2001), cost management encompasses the full cost control system,
which is characterised as a comprehensive corporate decision support system. This means that cost cannot be
ignored when making decisions, and having a robust and effective cost management system is the greatest
approach to make sound and informed decisions. Controlling or managing costs.
Cost management is the process of lowering a cost to a predefined benchmark or standard, usually through budget
management procedures. It's a system for keeping track of projections for different industry activities and assigning
financial costs to each forecast. Control costs by lowering them; lower costs by comparing actual costs to
anticipated costs and taking corrective action. Cost management, according to Kishore (2004), is a technique in
which actual results are compared to specified criteria in order to identify and assess waste (redundancy or
inactivity) in order to take corrective action to fix a divergence (Kishore, 2004).
Information technology can be defined as the current electronic processing of data, which includes storing,
processing, transmitting, transferring, and providing access to it (Leckson , 2011). Information technology is an
important part of business management since it allows you to integrate operations, ensure data accuracy, and better
manage your resources. Companies can use information technology to establish cost accounting systems and
management strategies.
Managing costs effectively is not always an easy task for executives. As a result, it is critical to discover strategies
to do this assignment without negatively impacting the company's performance at this moment. Management
software has become an ally for enterprises as a result of digital transformation and technological advancements.
This tool improves the decision-making process and increases the security of information, in addition to assisting
with cost management and organisation.
Good management entails more than just increasing money. In some circumstances, cutting costs rather than
increasing profits may be more appealing. As a result, in order to gain a competitive advantage, it is critical to
appropriately manage these points. With that in mind, adopting software to manage costs and profits can be
extremely beneficial. Both direct and indirect operations are influenced by technology tools. Furthermore, this
resource enables a business to foster innovations and changes that lead to improved financial management.

4
 References

1. Ala-addini, M., & Daqayeqi A. (2008). The results of application of COB IT reference model in evaluation of IT
management processes at National Iranian Drilling Company by the process maturity approach. Third International
Conference on Strategic Management, Razi Conference Hall, Tehran, Iran.
2. Barfield, J. T., Raiborn, C.A. & Kinney, M. R., (2001). Cost accounting traditions and innovations. (4thed).
Cincinnati, USA: South Western publishing, Thomson learning.
3. Kishore, R. M., (2004). Management accounting. New Delhi: Taxmann Allide Publishers.
4. Leckson-Leckey, G.T.Y., Osei, K. A. & Harvey, S. K., (2011). Investment in information technology and
Bank business performance in Ghana. International Journal of Economics and Finance, 3(2), May: 133.
5. Adeoti, A.A.; Valverde, R. 2014. Time-driven Activity-Based Costing for the improvement of IT Service
Operations. International Journal of Business and Management, 9(1):109-128.