The competitive position and its long-term preservation of the position on the mar-ket largely depends on the cost management policy. In this paper, the focus is on cost management in a small manufacturing company in the Republic of Croatia. Costs are divided by different types and certain criteria, which will be elaborated in more detail in this thesis. In addition to revenues and expenses, the basic accounting categories also include costs and effects, as well as all expenses and receipts. Costs are all expenditures for goods and services that are necessary in order to carry out production in a certain production company, that is, the complete business process. The business process requires constant management and control in order to keep costs as low as possible. In this paper work, an analysis of the operations of a small manufacturing company was carried out, where relevant data was obtained on the structure of financial data, on the dynamics of cost creation and income, i.e. the value of the company. On the basis of the conducted three-year analysis, conclusions and considerations were made about the company's financial condition and operating costs, as well as pos-sible improvements and some recommendations