Cost
control also known as cost management or cost containment is a broad set of
cost accounting method and management techniques with the common goal of improving
business cost efficiency by reducing cost or at least restricting their rate of
growth.
control also known as cost management or cost containment is a broad set of
cost accounting method and management techniques with the common goal of improving
business cost efficiency by reducing cost or at least restricting their rate of
growth.
Businesses
use cost control methods to monitor, evaluate and ultimately enhance the
efficiency of specific areas, such as department, divisions or product lines,
within their operations.
use cost control methods to monitor, evaluate and ultimately enhance the
efficiency of specific areas, such as department, divisions or product lines,
within their operations.
During
the 1990s, cost control initiatives received paramount attention from corporate
America. Often taking the form of corporate restructuring, divestment or
peripheral activities, mass layouts, or outsourcing. Cost control strategies
were seen as necessary to preserve or boost corporate profit and to maintain or
gain a competitive advantage. The objective was often to be the low-cost
producer in a given industry, which would typically allow the company to take a
greater profit per unit sales than its competitors in a given price level.
the 1990s, cost control initiatives received paramount attention from corporate
America. Often taking the form of corporate restructuring, divestment or
peripheral activities, mass layouts, or outsourcing. Cost control strategies
were seen as necessary to preserve or boost corporate profit and to maintain or
gain a competitive advantage. The objective was often to be the low-cost
producer in a given industry, which would typically allow the company to take a
greater profit per unit sales than its competitors in a given price level.
Some
cost control proponents believed that such strategic cost cutting must be
planned carefully, as not all cost reduction techniques yield the same
benefits.
cost control proponents believed that such strategic cost cutting must be
planned carefully, as not all cost reduction techniques yield the same
benefits.
