Cost management has traditionally been approached as an accounting-driven activity focused on expense control and financial reporting. While these approaches provide valuable insights into historical performance, they offer limited guidance for executives seeking to design sustainable profitability in complex and competitive environments. This article argues that effective cost optimization should be understood as a strategic management process rather than a purely accounting exercise. The study introduces the concept of profitability engineering to describe how organizations can proactively shape cost structures through managerial decisions related to organizational design, process configuration, pricing strategy, and cross-functional coordination. By examining the limitations of accounting-based cost control and highlighting the role of executive judgment, the article presents a management-oriented framework that integrates cost optimization into strategic decision-making. Rather than emphasizing short-term cost reduction, the proposed perspective focuses on aligning cost structures with value creation and long-term profitability. The analysis contributes to business management literature by repositioning cost optimization as an executive responsibility and offers practical insights for senior leaders aiming to enhance financial performance through intentional design rather than reactive control.
A Sun, study studied this question.