Cost Control Homework Help
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What is Cost?
Cost is a value allotted to a product or item, keeping in account the expenses done to manufacture of buy that product. In business, the company looks for profit and the cost of an item provides that profit margin exclusively. There can be many parameters to consider the cost of an item such as, its manufacturing process, cost of transportation, procurement of raw material cost etc. in our cost control homework help article we look at different methods for cost control.
What is Cost Control
If the cost of an item is high in market, its demand in the market is highly rare. Due to competition the product is needed to be cost minimized and that is done by doing cost cuttings in its manufacturing. Cost control is the method used to reduced certain costs amount from various department without compromising the quality of product. By that reduction the profit margin can be increased or decreased by availing it in market at a reasonable cost.
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Tools for Cost Control
In our cost control homework help article the various internal and external tools are highlighted that are important from the perspective of cost control.
The internal standards used for cost control are defined as
1. Budgetary control: the financial statement of revenue and expenses is clearly observed and hence the cost allotted to various department, called as budget, is tried to reduce in net amount. As our cost control homework help says it measures the outcomes of activities in quantified aspects.
2. Standard costing: under a provided set of working conditions, the target of cost is achieved. An estimation of product is done and efficient standard costs are established for it.
While value analysis and method study are two external standards used for cost control in our cost control homework help article.
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