cost control


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cost control

the task of controlling all items of expenditure by regular and frequent comparison of actual costs with predetermined budgeted or standard costs, identifying the causes of deviations of actual cost from standard, and taking corrective action to minimize such deviations. With regard to materials cost, deviations from planned materials usage can occur through excessive usage of raw materials for the output achieved or defective production leading to high scrap rates. With regard to labour cost, deviations from planned labour hours can occur, for example, through idle time caused by production bottlenecks. With regard to overheads, deviations from planned production-overheads per unit of product can occur because expenditure on overhead items exceeds budget or because actual output was less than planned. See MATERIALS COST VARIANCE, LABOUR COST VARIANCE, STANDARD COST, PRODUCTION MANAGEMENT, PRODUCTION CONTROL, BUDGETARY CONTROL, VARIANCE ANALYSIS.
References in periodicals archive ?
Track is the market leading solution for owners and contractors seeking greater cost control, transparency and contract compliance.
A decoupled or scatter-shot approach to cost control can prove to be not only misguided, but also can significantly dilute the management's effectiveness and cause long-term and potentially irreversible harm to the firm.
Comptel Roaming Cost Control is the first of a number of Comptel solutions built around Comptel Policy Control - a solution which complies with the 3GPP industry standard.
It delivers maximum cost control in only two conditions:
In order to implement cost control within an organisation, it is essential to collect data on what the costs actually are.
But there is a moral obligation to make safety as important as production, quality, cost control, and personnel relations.
Respondents cited cost control as the key driver in employee benefits policy last year and into 2003.
But he noted a pilot program for a cost control system is already under way in Local District A in the San Fernando Valley and will soon expand to the whole district.
is being awarded a $12,709,437 cost-plus-fixed-fee contract to provide for the Strategic Weapon System Maintenance Information Network effort and includes Trident II fire control life cycle cost control.
The study, published in the September/October issue of Health Affairs, followed publication of a New York Times article that cited double-digit increases in HMO premiums and questioned the ability of HMOs to sustain their cost control success.
In our study, we found that where cost control was approached in a systematic, overall fashion, cost-control measures were most effective.