cost control


Also found in: Dictionary, Acronyms, Encyclopedia, Wikipedia.

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 ?
To achieve sustainable cost control, many lab directors are viewing their labs as stand-alone businesses that need solid financial foundations.
Track is the market leading solution for owners and contractors seeking greater cost control, transparency and contract compliance.
Founded more than in 1994 by Steve Thomas and Kris Thorngren, the firm offers clients unemployment cost control, employment verification and tax credit services.
Unlike China, western countries pay much attention to the cost control involved in economic development very early.
However, Red Bull principal Christian Horner agreed with Whitmarsh about the necessity of cost control, saying that although FOTA worked in the beginning, it fell apart because self-interest was too strong amongst competitors.
Cost control, centralization, data governance, validation and storage are the main challenges faced by the majority of investment managers.
Key EPC (Engineering, Procurement and Construction) issues such as project risk management and cost control will be thoroughly discussed by renowned experts of the industry at an upcoming EPC forum in Abu Dhabi.
Using cost control methods as a framework, he emphasizes the importance of a system for monitoring performance and determining the most cost-effective ways to provide services, with an emphasis on rooting out "nonvalue" activities that provide little return on resources.
Cost control was relatively good with overall operating expenses growing by 24.6% YoY to RUB10.3bn, resulting in EBITDA more than doubling over the period to RUB3.0bn (EBITDA margin improved to 24.2% vs 16.1% a year ago).
I don't know--I'm measuring the temperature and ordering fewer office supplies." And so it goes for companies that think cost control, metrics, key performance indicators (KPI's) and dashboards can solve problems and sustainably improve results without a cohesive strategic plan.
Traster, a freelance writer who has worked in the culinary industry and culinary arts education, provides culinary students with a textbook on cost control that begins with culinary math basics that make other cost control equations easier to understand and learn.
Another factor that is seen as positive is the good cost control. "In the report the cost control was impressing, costs did not increase in local currencies despite a number of launches," Danske Bank said.