Achievement of Competitive Advantages in Micro, Small and Medium-Sized Enterprises through Cost Management

In order to achieve and maintain competitive advantages enterprises have to apply effective cost management. This paper describes the methods of cost management and presents the possibilities of using those methods in micro, small and medium sized enterprises. An empirical research about cost management in micro, small and medium sized enterprises was conducted through the questionnaire. The results of the conducted empirical research show that most of micro, small and medium sized enterprises don't have implemented strategic cost management but they are using traditional cost management methods. The reason for using only traditional methods is because those enterprises aren't familiar with modern cost accounting methods as well as major problem for small and medium sized enterprises are owners who are also managers without enough knowledge to implement modern methods. In many micro and small enterprises the management of business books is left to the book-keeping service outside the company and the owner doesn't have enough information on the costs. Also, accounting information within the financial statements is aimed just to satisfy the legal framework and not to create information for decision making as a tool of managerial accounting. Some enterprises started to apply modern methods mostly for product cost determination, for decision making in production, product design and activity analysis. Those enterprises that apply modern methods of cost management achieve better financial position and competitive advantage on the market, decrease business risk, create additional value to products and services and achieve higher control over their business in general.