Usage of cost information for control and a recommendation

Evolutionary change that took place after 1980, especially in the areas of production, distribution and marketing has created changes also in the internal structures of the organizations. Most important change among them is the transformation from classical cost control methods to cost control methods which have huge effects on the management decisions. There exists different cost control approaches, which all aim to increase the profitability of the organizations and increase their service quality. In the current study, beside a general review on the cost control methods and approaches, recommendations are also made on alternative cost control methods. In the scope of the study, switching to the ERP cost control method is offered as a suitable alternative. By ERP model, all the organizations from the smallest one up to the largest one may effectively and easily manage their cost control processes. In this totally automatized system, the organization managers may also easily and effectively control and supervise their organization. From all of these aspects, it may be claimed that the ERP model is a fast, modern, reviewable cost management and control tool, which is a need for all the organization types.