Thnx sajib... I think we all should know why cost should be minimized. The prime reason is to make an organization profitable. There are different aspects to make an organization profitable. Like, adjusting the capital with the org.'s liquidity. As we know, the main reason to reduce cost is to generate profit. So an organization can reduce liquidity and thus generate profitability by increasing capital. Another thing is, an org. should have a distinct knowledge about fixed, floating, direct and indirect expenses. For example- as we know direct expenses include the raw material, direct patern of wages and convenience. Now, if these are mishandeled then although the financial statements would be ok, but the org. would not be able to take a fair decision. And this may cause different misinterpretetions.