Cost control refers to management’s effort to monitor, evaluate, and trim expenditures.
Managers should influence the actions of individuals who are responsible for performing tasks, incurring costs, and generating revenues. First managers plan the way they want people to perform, then they implement procedures to determine whether actual performance complies with these plans. Cost control is a continuous process that begins with the annual budget.
Control reports are informational reports that tell management about a company’s activities. Control reports are only for internal use, and therefore management directs the accounting department to […]