Financial failures in business and cost management

03.SUMMARY Financial failure is a duration which leads to bankruptcy incase not to pay debts, internal and external causes are very effective during this duration. In today's intensive competition, that production costs are important and not only small but also big businesses failure have increased the importance of the subjet. Failure doesn't wanted in business. It effects business negatively. For not being effected from those conditions, businesses searches the reasons of financial failure and give importance on predictions of financial failure. On this predictions, they uses financial rates. But in the latest years as seen the developments in the economics and technological developed of the production cost have increased and the cost management in business has developed. The purpose of this search is to explain the reasons of the financial failure of businesses, to provide the necessary importance of production cost and to help succeeding the efficent usage of source in global competition conditions. Literature search related to the subjet has been done and made use of home and foreign refrences in this search. Relation has been tried to sut up between production cost and financial succes and induction method has been used. In this search, firstly the defination and aims of business and the importance in the economical structure have been explained. Secondly, financial failures, the reasons of these and the failures which cause the result of these sociaeconomic have been tried to explain. Besides, it has been given a place to the benefit of the predictions of financial failure. Then, the explanations have been put forward about the importance and means of the cost management by giving detailed knowladge about production cost. Finally, the prediction of financial failure and the importance of cost management has been put forward by practising on a sample company. VI