The contemporary business environment is passing through a dynamic phase of global competitiveness. In this globally competitive environment, evolving from the rapid technological advancements, innovative logistics management and strategic costing methodologies, concepts relating to cost management have become the new mantra for attaining sustainable competitive advantage and enhancing companies' profits. The increased emphasis on the overall quality aspect has forced organizations to give high prominence to the process, as well as to the quality of the product. The cost of quality has become an important concept in contemporary cost accounting practices. This article attempts at gaining a deeper insight into the various cost management techniques practiced by organizations, operating in the contemporary cutthroat business environment.

The dynamic and competitive nature of business in the neoliberal business environment has resulted in a paradigm shift in management practices across the globe. Cost concepts have taken the center stage, resulting in the genesis of strategic and innovative cost management tools and techniques. These cost management techniques empower an organization to establish a competitive advantage over its rivals, by providing more customer value at a comparatively lesser cost. The following are some of the important factors affecting contemporary cost management.

In order to grow and prosper, many companies are seeking business opportunities in global markets. The economic liberalization and increased privatization across the globe has resulted in competition and cooperation with foreign companies on a larger scale. These new parameters and constructs of international business has made the nature of global business extremely dynamic and, thus, it is essential to have a balanced approach on issues related to different geographies, cultures, laws and business practices. Free market economic policies and improvements in the transportation and communication system have led to a global market for manufacturing and service firms. This new competitive environment has increased the demand, not only for more cost information but also for more accurate cost information.

The Accounting World Magazine, Global Competitiveness, Contemporary Cost Accounting Techniques, Contemporary Business Environment, Innovative Logistics Management, Strategic Costing Methodologies, Cost Management Techniques, Global Markets, Economic Liberalization, Communication Systems, Information Technology, Decision Support System, DSS, Online Analytic Programs, OLAP, Electronic Data Interchange, EDI, Computer Aided Design, CAD, Flexible Manufacturing System, FMS, Total Quality Management, TQM, Globalization.