Cost management refers to a series of scientific management behaviors such as cost accounting, cost analysis, cost decision-making and cost control in the process of enterprise production and operation. Let's take a look at the significance of cost management research.

Significance of cost management research

1 Importance of cost management in construction economy

The ultimate goal of construction enterprises is to obtain economic benefits, which is directly related to the construction cost. If the construction enterprise can't effectively control the project cost and construction cost, it will lead to the decline of economic benefits, or pay too much attention to economic benefits and ignore quality, which will lead to various quality problems and safety accidents, and even rework will lead to cost waste.

Construction enterprises must attach importance to cost management and cost control if they want to maximize higher economic benefits. Economic cost management plays a very important role in the whole planning, design and construction stage of a construction project. The construction cost is determined by the owner's quota and the project budget, so the result of cost management can be used as an important standard of project cost.

Scientific cost control and cost management require all relevant departments to carry out material procurement and supporting work on the basis of cost management. From the perspective of project management, cost management is an important part of construction project management, which is directly related to the cost of the project.

Cost management can directly affect the construction design, construction materials and equipment, on-site construction, construction technology application, etc., so cost management has a key impact on the whole construction project. To sum up, cost management is important and necessary in the construction economy.