Modern Cost Managament Models: Are They Used In Croatian Companies?

Cost management is a managerial powerful tool for increasing competitiveness and improving business results. The main objective of cost management is to achieve cost efficiency, which in practice means the realization of the optimal ratio between the costs involved and the results that it achieves. Cost management models statistical analysis in Croatian companies was made. The main aim was to research cost management models used in Croatia as a support for sustaining and enhancing competitiveness. The survey was conducted in November 2012. Using simple random selection procedure 70 Croatian companies were selected from Register of business subjects in Croatian commercial Chamber. The selected companies were surveyed mostly by e-mail (50 companies) but also by phone (10 companies) and by personal contact (10 companies). The final response rate was 41%. The main hypothesis was that Croatian companies fail to apply adequate models of cost management and thereby significantly reduce their efficiency and competitiveness. Modern cost management model usage provides options for managers in their actions to be more precise, efficient and effective. But the research has shown that Croatian companies are mostly using traditional methods of cost management. The further cost management model usage analysis in the Croatian companies showed that most companies consider that they could achieve significant cost savings thanks to better use of different models of cost management. The empirical research results have shown that Croatian companies do not use adequate models of cost management, thus confirming the hypothesis. Further research aims should be to investigate reasons of not using modern cost management models as integral parts of the companies’ strategic orientation.