Traditional cost control systems focused on cost containment rather than cost reduction. Today's cost management focuses on process improvement and the identification of how processes can be more effectively and efficiently performed to result in cost reductions.

Required:

Discuss how each of the following cost management techniques differs from the traditional cost containment approach and how each seeks to achieve cost reduction.

-Just in time

-Target costing

-Life cycle costing

-Activity based management

Question from Cost and Management Accounting by Colin Drury, 7th edition.