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Cost is a monetary estimation of expenditures. It is the amount recorded in the bookkeeping records as asset cost and also the value of goods denoted on invoices. There are various types of costs such as direct and indirect costs, manufacturing costs and non-manufacturing costs, product and period costs, fixed and variable, controllable and uncontrollable costs, etc. Cost control is defined as an effort done by the management to achieve cost goals within a particular environment. It should be continuously carried out like a routine activity because it is not a specific program. Cost concept for control is explained thoroughly in Cost Concept for Control Assignment Help.
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Various Steps Involved In Cost Control
The various steps involved in Cost Control explained in Cost Concept for Control Assignment Help are –
Planning is the initial and the most important step in doing any task. An unplanned project has no clear future. Every individual must be given some authority and responsibility according to the project. First material, elements, required time, equipment, etc.is decided and in accordance with the quantities the costs can be calculated. Plans are prepared in the form of budgets, records, statements, etc.
The second step is communication. In this step the pre-planned idea is shared with other members. The policy is communicated with other employees and the work is divided among them. Communication is the transfer of information from one person to another. There are two directions of communication. In an organisation or a company, communication between the manager and the employee to give instructions is in downward direction and for reports submission is in upward direction.
After monitoring the performance, good work should be awarded to keep the employees motivated and dedicated towards their work. Hence, this will lead to better performance increasing the growth of the company. This step is explained thoroughly in Cost Concept for Control Assignment Help.
In this step, evaluation is performed and then actual performance is compared with the predetermined target. These reports are then forwarded to the management. If the results are not satisfactory then proper decision must be taken in order to improve it.
- Decision Making
The last step is decision making. The management takes necessary steps and corrects errors (if any).
The advantages of Cost Control given in Cost Concept for Control Assignment Help are
• It helps the firm to maintain higher sales.
• Firms’ profit can be increased.
• This method helps to give jobs to the employees.
• Employees are awarded with bonus and also promotion.
• Growth of the company increases and hence its value in the market also increases rapidly.
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