What are the main objectives of cost control and cost reduction?
The difference between the two can be introduced as follows: a. Purpose: cost control aims at maintaining the cost in accordance with the established target or standard but cost reduction is directed to explore the possibilities of producing goods or providing services at lower costs.Click to see full answer. Beside this, what are the objectives…
The difference between the two can be introduced as follows: a. Purpose: cost control aims at maintaining the cost in accordance with the established target or standard but cost reduction is directed to explore the possibilities of producing goods or providing services at lower costs.Click to see full answer. Beside this, what are the objectives of cost control? Objectives of Cost Control To analyze income and expenditure:- In financial accounts, stress is usually placed on the ascertainments of total cost and profit i.e. cost of sales, gross profit. In food cost control, on the other hand, much stress is placed on the various departments or a section of a business.Also Know, what are the essentials for success of cost control? Following are some of the valuable and essential techniques used for efficient project cost control: 1 – Planning the Project Budget. 2 – Keeping a Track of Costs. 3 – Effective Time Management. 4 – Project Change Control. 5 – Use of Earned Value. Simply so, what is cost reduction techniques? Cost reduction is the process used by companies to reduce their costs and increase their profits. Depending on a company’s services or product, the strategies can vary. Companies typically launch a new product without focusing too much on cost.What is cost control and cost reduction?Cost Control is a technique which makes available the necessary information to the management that actual costs are aligned with the budgeted costs or not. Cost Reduction is a technique which we used to save the unit cost of the product without compromising its quality.
