"Cost management is the improvement of an orgnisation's cost effectiveness through understanding and managing the real causes of costs" (Langfield-Smith, Thorne, & Hilton,

2009:795)

REQUIRED

For each of the following cost management tools, briefly explain how it can be used to manage cost.

• Activity-based management
• Business process re-engineering
• Life cycle costing
• Target costing
• Theory of constraint (Managing throughput)