The major challenge nowadays is to manage the cost of business. Therefore cost management is required in an organization as it is a process of planning and controlling the budget of a business. It is a form of management accounting which allows a business to predict impending expenditures to help reduce the chances of going over budget. Thus it is a planning, estimating, budgeting, financing, funding, managing and controlling cost so that the tasks can be completed within the approved tenure and budget. This helps in ensuring competitiveness in long run. Activities performed by PAS shall include:

• Analyzing of business objectives
• Identification of scope of areas to improve cash flow cycles.
• Establish 'standard costs' for each category or process.
• Comparison of actual costs with the standard & budgeted costs and its variance analysis.
• Evaluating cost savings, excessive costs, efficiency etc.
• Establishing budget costs, reports, preparation of charts etc.