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Abstract
Cost management is a method of reducing operating or production expenses in order to provide less expensive products or services to consumers. In other words, it’s the process management uses to analyze its production and streamline its operations to keep costs low and manage expenses in the future. Cost control by management means a search for better and more economical ways of completing each operation. Cost control is simply the prevention of waste within the existing environment. This environment is made up of agreed operating methods for which standards have been developed. Cost reduction refers to bringing down the cost of production. This involves the examination of the purposes for which costs are incurred and by a variety of means, it eliminates or reduces the reasons or spending. The existing standards are closely examined at the broad and detailed levels with a view to improvement. Cost reduction should not be a fire-fighting exercise but a continuing process of improving productivity within the organization. Cost management practices helps to Tata Steel Limited and Steel Authority of India Limited to analyze its production and streamline its operations to keep costs low and manage expenses in the future.