Cost optimization is the process of reducing expenses while maintaining the quality of products or services. It involves analyzing various business operations to identify areas where costs can be minimized without sacrificing performance. This can include streamlining processes, negotiating better supplier contracts, or adopting more efficient technologies. Businesses often use strategies like budgeting, resource allocation, and performance metrics to achieve cost optimization. By focusing on these areas, organizations can improve their profitability and ensure long-term sustainability. Effective cost optimization helps companies remain competitive in their respective markets while maximizing their financial resources.