Cost Control versus Cost Reduction
Controlling the costs, already pre-determined on the basis of assumption of reasonable level of efficiency taking the past, present and future into account is the main focus of cost control. The actual are tried to be brought within the ambit of targets. Cost accounting is primarily concerned with controlling the costs so that losses and wastages are eliminated or at least minimised to the extent possible. While cost reduction is entirely a matter which goes much beyond cost control and hence it is not synonymous with cost control at all, now cost accounting aims at cost reduction also, as well cost control. Cost reduction is a process that actually starts from where cost control ends. Management has to ponder over in terms of bringing down costs to levels lower rather than the targeted ones so like to face fierce competition and present in this very competitive business environment. How, with no sacrificing quality or compromising with the utility of the services and products the cost can be permanently cut down, is the real aim of cost reduction. So, new ways and means are needed to be desired, researches are to be performed and management has to be innovative.
The major differences among cost control and cost reduction can be explained within several sub-headings as under, however both underline what costs ought to be:
Basis
Cost Control
Cost Reduction
1. Objectives
2. Approach
3. Nature.
4. Emphasis
5. Assumptions
Cost control intends at maintaining the cost in accordance with the established targets or standards.
Cost control lacks dynamism because it aims to attain lowest possible costs within existing circumstances.
Cost control is a preventative function, within it; costs are optimised before they are incurred.
In case of cost control, the emphasis is on the past. It aims at keeping the costs within the limits already set. In case the costs reach the target level, the objective of cost control is achieved.
Cost control assumes the existence of specific standards or norms which are not challenged.
Cost Reduction is directed to explore the possibilities of enhancing the targets or standards themselves. It challenges all standards and makes continuous efforts to better them.
Cost reduction is a continuous process and recognises no conditions like permanent. It includes a continuous process of analysis and tries to find out new means to get reduction in costs.
Cost reduction is a corrective function. It operates even while efficient cost control system exists. It pre-supposes that there is always a room for reduction in the achieved costs.
In case of cost reduction, the emphasis is on the present and the future. The emphasis is not on what has been the cost but what could be the possible improvement in the costs. Thus, there is no end to cost reduction.
Cost reduction assumes the existence of concealed potential savings in the standards or norms which are therefore subject to constant challenge or improvement.
Latest technology based Cost Accounting Online Tutoring Assistance
Tutors, at the www.tutorsglobe.com, take pledge to provide full satisfaction and assurance in Cost Control versus Cost Reduction homework help via online tutoring. Students are getting 100% satisfaction by online tutors across the globe. Here you can get homework help for Cost Control versus Cost Reduction, project ideas and tutorials. We provide email based Cost Control versus Cost Reduction homework help. You can join us to ask queries 24x7 with live, experienced and qualified online tutors specialized in Cost Control versus Cost Reduction. Through Online Tutoring, you would be able to complete your homework or assignments at your home. Tutors at the TutorsGlobe are committed to provide the best quality online tutoring assistance for Cost Accounting homework help and assignment help services. They use their experience, as they have solved thousands of the cost accounting assignments, which may help you to solve your complex issues of Cost Control versus Cost Reduction. TutorsGlobe assure for the best quality compliance to your homework. Compromise with quality is not in our dictionary. If we feel that we are not able to provide the homework help as per the deadline or given instruction by the student, we refund the money of the student without any delay.
tutorsglobe.com assumptions of marginal productivity theory assignment help-homework help by online marginal productivity theory of distribution tutors
tutorsglobe.com classification of production function assignment help-homework help by online production function tutors
tutorsglobe.com theories of evolution assignment help-homework help by online zoology tutors
tutorsglobe.com absorption and movement assignment help-homework help by online cell as a physiological unit tutors
tutorsglobe.com blood groups assignment help-homework help by online immunology tutors
tutorsglobe.com reproduction biology assignment help-homework help by online botany tutors
fertilization and cleavage formation in animals tutorial all along with the key concepts of types of fertilization, aquatic animals with external fertilization, mammals and internal fertilization, external fertilization, sea urchin, internal fertilization and frog and zebrafish eggs
tutorsglobe.com successive electron affinities assignment help-homework help by online electron affinity tutors
gas law-i tutorial all along with the key concepts of kinetic molecular theory of gases, boyle's law, charles' law, kinetic theory explains boyle's law, kinetic theory explains charles' law and general gas equation
Free AP Physics Study Guide, AP Physics Test Papers, AP Physics Practice papers, AP Physics Test pattern and general information, Find AP Physics exam information and resource, material free at Tutorsglobe.com
Reactions of Quinolines tutorial all along with the key concepts of Physical and Chemical Properties of Quinoline, Electrophilic Substitution, Nucleophilic Addition/Substitution of of Quinoline
tutorsglobe.com sickle cell anaemia assignment help-homework help by online genetic diseases tutors
Gas Origin, Transportation and uses tutorial all along with the key concepts of Origin of Natural Gas Accumulations, Unconventional Gas Accumulations, Town Gas, Bio Gas, Hydrates, Natural Gas Production, Uses of Natural Gas, Power Generation and Environmental Effect-Natural gas
tutorsglobe.com compensation point assignment help-homework help by online respiration tutors
Preparation and function of the Cell tutorial all along with the key concepts of Observing Living Tissue, Preparation of Dead Tissue, Light Microscopy, Electron Microscopy, Examination and Interpretation of sections, Histological Stains and Histochemistry
1961254
Questions Asked
3689
Tutors
1479097
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!