Cost Control

Cost Control

The practice of managing and/or reducing business expenses. Cost controls starts by the businesses identifying what their costs are and evaluate whether those costs are reasonable and affordable. Then, if necessary, they can look for ways to cut costs through methods such as cutting back, moving to a less expensive plan or changing service providers. The cost-control process seeks to manage expenses ranging from phone, internet and utility bills to employee payroll and outside professional services.

To be profitable, companies must not only earn revenues, but also control costs. If costs are too high, profit margins will be too low, making it difficult for a company to succeed against its competitors. In the case of a public company, if costs are too high, the company's may find that its share price is depressed and that it is difficult to attract investors.


Investment dictionary. . 2012.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • cost control — ➔ control1 * * * cost control UK US noun [C or U] (also cost containment) ► ACCOUNTING the process of controlling how much a company or organization spends so that costs are not greater than an agreed budget, or a particular method that is used… …   Financial and business terms

  • cost control — The techniques used by various levels of management within an organization to ensure that the costs incurred fall within acceptable levels. Cost control is assisted by the provision of financial information to management by the accountant and by… …   Accounting dictionary

  • cost control — The techniques used by various levels of management within an organization to ensure that the costs incurred fall within acceptable levels. Cost control is assisted by the provision of financial information to management by the accountant and by… …   Big dictionary of business and management

  • cost control — noun : use by management of cost analyses and their interpretation in corrective measures toward increasing efficiency and economy of operation …   Useful english dictionary

  • cost control account — See: cost ledger control account …   Accounting dictionary

  • cost ledger control account — cost control account The control account that appears in the financial accounting ledger in an accounting system in which separate books are maintained for the financial and costing records. The balance on the cost ledger control account agrees… …   Accounting dictionary

  • cost containment — ˌcost conˈtainment noun [uncountable] ACCOUNTING when an organization keeps costs low, or within a limit that has been planned: • Despite intense cost containment efforts, corporate medical bills rose an average 21.6% last year. * * * cost… …   Financial and business terms

  • Cost engineering — is an area of engineering practice concerned with the application of scientific principles and techniques to problems of cost estimating, cost control, business planning and management science, profitability analysis, project management, and… …   Wikipedia

  • cost accountant — ➔ accountant * * * cost accountant UK US noun [C] ► ACCOUNTING an accountant who examines all the costs involved in a business activity or a production process in order to help managers decide how to make profits or save money: »The prime role of …   Financial and business terms

  • Control line — Brodak Control Line Aerobatic Strega in flight Control line (also called U Control ) is a simple and light way of controlling a flying model aircraft. The aircraft is connected to the operator by a pair of lines, attached to a handle, that work… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”