In modern business conditions, cost accounting has begun to be viewed as a separate entity. It is intended for internal users, and its goal is to make a profit and maintain a long-term competitive position. Knowing the cost structure of the company is very important for monitoring costs, and they are present throughout the business and the future of the company depends on them. When costs start to rise sharply and approach the realized revenues, the management reacts by using various methods of reducing costs. The most common method is cost cutting or elimination which can cause great damage to the company. Therefore, it is necessary to manage costs with their optimization. The application of various cost management models is also carried out in service activities. Service activities, unlike manufacturing, have more demanding operations due to the specifics of services that distinguish them from products. Services may or may not be related to a physical product. Accordingly, the service activity of confectionery production is specific for observation because it has the characteristics of service and production activity, because the service is related to the product. Therefore, this work is based on the study of costs and cost management through the traditional model that the company encounters from practice.