The cost-benefit principle refers to the principle that in cost management, when companies apply relevant tools and methods, they must weigh the benefits they bring to the company and the costs that they bring to the company. they support, and avoid that the benefits obtained are lower than the cost of their investments. Cost-effectiveness principle is one of the cost management principles, which also includes the principle of integration, adaptability and importance.
The overall objective of cost management is mainly formulated on the basis of the company's competitive strategy. Its purpose and importance is to reduce costs through cost management and create conditions for companies to expand their reproduction; to increase enterprise profits and improve enterprise economic benefits through cost management; to help businesses gain advantagesare competitive through cost management and improve their competitiveness and risk resilience.