The importance of cost structures to management.

The current business times are characterized by a competitive and globalized market environment as a consequence of the accelerated advances in information and technology that have generated changes in the field of business including manufacturing and that lead organizations to know precisely how much they spend and earn..

Therefore, competition in any market in the world and the global economy have forced many contemporary organizations at extreme levels to face the new challenges imposed by the continuous conditions and the multiple variations in the value of costs and expenses.

Therefore, this information requires several aspects that are determinant for effective decision making that allow management to achieve productive and competitive levels in the market, which has driven the importance of the cost structure, since it is essential that the management schemes have structures, methods and procedures suitable to know exactly what it represents for the companies..

Therefore, cost accounting requires a precise study of the processes and production costs, since it is the key tool for planning and control.

Hence the relevance of having a cost structure of each process of the organization as well as its marketing of all types of product or service, since this will allow management to stipulate the profits to be obtained and hence the selling price..