Page 12 - Cost

Cost Competitiveness

Te impact of various resources used in resource allocations. Te top management
ultimate delivery of goods and services is can efectively manage the company / ongoing
a complex chain of events and processes. projects by only focusing on exceptional items.
An efcient system requires that the data at
each stage is reliably captured, timely and
professionally analyzed and corrective actions Q. For deriving the real value of an
taken accordingly. Such an approach though organization, what will be the focal point
may appear in the beginning bit exhaustive, of managing costs at an organizational and
but it can create robust internal monitoring transactional level?
and decision support system. Te impact of
change in inputs, variations in prices and
quantities, changes in design can be captured A.Te principles of cost management
online. Such systems also help in evaluating provide adequate solutions to develop focal
contribution from diferent components and points for identifying and managing costs at
diferent levels in diferent business situations.
evaluate their impact. Te business environment and internal set
up of the company, nature of business etc.
Q. How do you evaluate your organization will broadly derive the cost management at
in this context? organizational and transactional levels. Te
business ofers are designed so dynamically
to ensure that the pricing is driven by line
A.RITES is a global consulting company of business, long term clientele business
handling projects in various infrastructure perspective, diversifcation plan and maturity
sectors and spread over locations in several of business segment. For example, as a
countries. Primarily, being a consultancy consulting company, at the organizational
organization and think tank for key national level, the contribution from all the divisions
infrastructure initiatives, it enhances its value are monitored to ensure that the targeted levels
addition in project delivery by leveraging are retained or bettered but at the divisional
strong knowledge base developed overtime. or transactional level, the control rests with
Te systems have been so designed that not divisions to see the compliance by individual
only at the time of bidding reasonably correct projects or groups and also the overall impact
estimates can be prepared, but also during
implementation, all the physical and fnancial collectively.
bidding parameters, direct and indirect
costs, proftability and risks are known all Author can be reached at : rmehrotra61@
the time. Te business unit heads are able to gmail.com
take corrective actions in time and manage

The Institute of Cost Accountants of India www.icmai.in 12