to achieve is because of a lack of cost
management, a critical element of financial
management. Expressed in simplest
terms, cost management is a responsibility
for managing the factors that cause
costs; specifically what causes the work
(the activities in the MAF) that consumes
resources. When the factors that cause
costs are understood and managed, it is
much easier to achieve sound resource
management.
• Factors that cause the costs of activities
(resources consumed) may include many
things, such as: the volume of client
demand; service standards (e.g., accuracy
and timeliness); the type of clients; and
the complexity of governing rules and
systems. This is the non-financial information
that needs to be linked to the
financial information in order to link
resources to results. A good cost management
structure within the FM & C
framework will provide clear cost policies
and principles, costing methodologies,