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. Academic. 2012.
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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 — Fin the process which ensures that actual costs do not exceed acceptable limits … The ultimate business 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