According to Eric L. Kohler, cost control is the employment of management devices in the performance of any necessary operation so that pre-established objectives of quality, quantity and time may be attained at the lowest possible outlay for goods and services.
Cost control has been defined by Kohler as “The employment of management devices in the performance of any necessary operation so that pre-established objectives of quality, quantity and time may be attained at the lowest possible outlay for goods and services.
Control Methods
Control methods used for expense and cost management include target net income, variance analysis, and earned value management.
Control methods also include using specialized cost management software for the business and project management to improve cost budgeting and cost performance.
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Cost Control as A Part of Cost Management
Cost control reduces costs and expenses by managing budget vs. actual variances by cost center, profit center, department, or project and taking corrective action.
Cost control is one step in the cost management process.
Cost management is a broader term, encompassing estimating methods to forecast resources required and perform cost estimation, bu.
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Cost Control Software
Cost control software, which often includes dashboards for spend management and spend analysis, is available as a management system for different business applications.
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Does standard costing increase Prot level in a company?
Table 19:
Standard costing increases the prot level in the company.
Table 20:Stock is being valued at standard cost.
Table 21:Cost control application has increased protability of the company.
Table 22:Surplus revenue is assured by cost control.
Table 17:Accurate standard cost control minimizes costs. ,
Earned Value Management
Earned value management (EVM) controls projects as they progress, including the schedule and actual costs vs planned costs.
The planned project costs expected for the percentage of completion of the project to date are compared to actual costs incurred on the project to date to establish project controls and evaluate project performance.
Earned val.
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Examples of Cost Control
Examples of types of cost control include:.
1) Renegotiating contracts with more favorable terms.
2) Getting more competitive bids from different vendors.
3) Improving product quality to reduce rework and scrap.
4) Reducing the number of items carried in inventory.
5) Reducing employee expenses with better expense management.
6) Accounts payable outsourc.
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Is cost control a fundamental tool for organisation performance?
Citation:
Mutya T (2018) Cost Control:A Fundamental Tool towards Organisation Performance.
J Account Mark 7:283. doi:10.4172/2168- is able to easily track expenses which in turn reduces its operation costs. budget predictions do not adequately increase the net prot margin. growth, implying a good position for Mount Elgon Millers Limited. ,
What is standard costing & responsibility accounting?
standard costing, responsibility accounting. 1.
Cost control should be in place in all the departments, most 2.
Budget established should not remain xed, but should be 3.
Collection of costs should be made by each area of responsibility in cost control, stock valuation and budgetary control.
