AN ANALYSIS ON COST MANAGEMENT

AN ANALYSIS ON COST MANAGEMENT

R. NANDHINI 1 , DR.B. BHAVYA 2

1 RESEARCH STUDENT-MBA DEPARTMENT IN SCHOOL OF MANAGEMENT STUDIES, SATHYABAMA UNIVERSITY, CHENNAI, TAMIL NADU.

2 RESEARCH PROFESSOR-MBA DEPARTMENT IN SCHOOL OF MANAGEMENT STUDIES, SATHYABAMA UNIVERSITY, CHENNAI, TAMIL NADU.

ABSTRACT

The analysis investigates Sri Sai Housing in Chennai through its cost management system practices. The research evaluates both performance measurements of cost management systems and looks for improvement possibilities. The inspection examined all financial system aspects along with control techniques for costs and inventory management practices across the entire organization. The current management practices for costs at Sri Sai Housing require additional development options which achieve satisfactory performance levels.

 Through the combination of raw material turnover ratio with the inventory turnover ratio the company displays effective inventory management but results from inventory holding period and inventory to working capital ratio indicate room for improvement. Sri Sai Housing will improve their cost control system by implementing decision analysis through ABC and HML together with 3x3 matrix analysis according to the study. Market expansion and research development funding along with new inventory system software transitions will bring advantages to the company. Sri Sai Housing demands powerful cost management practices to achieve success because it needs to implement all proposed performance improvement measures to excel.