which is the main field to control the cost of production and distribution
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Home > Fundamentals of Accounting > Fundamentals of Cost Accounting > Cost Control and Cost Reduction
Fundamentals of Cost Accounting
Cost Control and Cost Reduction
Most of the enterprise is want to maximize the profit, which is possible by decreasing the production cost. For this purpose, management uses two efficient tools, i.e. 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.
Cost control and Cost reduction
Definition of Cost Control
Cost Control is a process in which we focus on controlling the total cost through competitive analysis. It is a practice which works to align the actual cost in agreement with the established norms.
It ensures that the cost incurred on production should not go beyond the pre-determined cost. Cost Control involves a chain of various activities, which starts with the preparation of the budget in relation to production.
Answer:
auditing
cost accounting
none of these
financial accounting