In this paper, the focus is on costs and their management. They are an integral part of business and as such are inevitable. They can be defined as the value-expressed costs of the labor elements needed to create certain business effects. They are divided according to different criteria and types, and their basic form is natural costs. Cost management is a special segment of management that aims to optimize costs and get the most out of the costs incurred. The cost management process uses certain models and methods to manage it more efficiently. Thus, traditional and modern management models are imposed that differ from each other in terms of origin, although they all have a common goal, which is cost optimization. Integrating this process into the business system, the company can lead to a number of positive effects, and among the most important are long-term profitability and competitive position in the market. The paper uses the example of Franck d.d. Namely, it is a Croatian food company that is one of the leading leaders in the production of coffee and tea. An analysis of the business was performed on the company, where relevant data on the dynamics and structure of financial data were obtained, as well as an analysis of operating costs, which shows the costs of this company and their value. Based on the conducted analysis, conclusions were made on the financial condition of the company and operating costs. At the same time, it was considered how the company manages costs and some of the recommendations were made in the form of improvements.