ITMAM Financial Solutions
Cost Control Systems
It is the mechanism that the management of the organization can use to regulate the costs of the manufacturing unit, within the specified and planned level. This mechanism involves the need to identify the necessary criteria and ascertain the actual results to compare them with the expected data, analyze the differences and then develop the necessary procedures to correct deviations if any.
Cost control involves making targeted spending reductions in order to increase profits. Applying this level of control can have a profound positive impact on long-term profits.
The primary objective of using cost control techniques is to reap more profits, ensure that business processes are carried out within pre-established cost criteria, and avoid waste, by producing efficient products by minimizing their production costs, and determining what costs are most necessary in the production process and what costs can be dispensed with.