text: Chapter 5
  is not a one-time event but a continuous process that controls cost while improving operational
  performance. For a more detailed discussion of cost management, see the Deputy Assistant Secretary of the
  Army (Cost and Economics) Cost Management Handbook.
  THE COST MANAGEMENT PROCESS
  5-45. As depicted in figure 5-2, the cost management process encompasses four components that support
  the commander’s decision making and improve fiscal stewardship. These components are cost planning,
  cost accounting, cost analysis, and cost control.
  * Cost planning involves forecasting future costs of a particular operation or activity.
  Organizations establish cost targets and efficiency goals to continually improve operational
  efficiency and effectiveness.
  * Cost accounting requires capturing and valuating data that is relevant, accurate, and timely, and
  identifying the relationship between cost and operational output and performance data.
  * Cost analysis is the assessment of cost to enable the decision-making process. Cost analysis
  gives financial managers an understanding of the full cost of operations, products, and services.
  Some of this analysis includes calculating variances, reviewing depreciation, tracking cost
  trends, and forecasting costs.
  * Cost control entails taking action based on the analysis. This includes revising targets,
  reallocating resources, and adjusting output to maximize value of the desired outcome.
  5-46. The cost management process is the accurate measurement and thorough understanding of the full
  cost of an activity‘s processes, products & services in order to support leaders’ decision-making and fiscal
  stewardship, thereby maximizing the effectiveness and efficiency of the unit/organization operations. Cost
  management considers all key quantitative aspects of the consumption of resources and enables Army
  leaders and financial managers to identify, quantify, and value the economic benefits and related costs of
  alternatives, resulting in better stewardship of Army dollars. With full cost visibility, the Army can execute
  operations optimizing the use of resources and ultimately maximizing value for all internal and external
  stakeholders (e.g., U.S. tax payers).