cost (noun, cost, \ kɒːst \) control (noun, con-trol, \ kənˈtroʊl \)
Definition: represents a set of activities or a process that is connected to managing costs related to a specific business activity, procedure, operation, process or the organization as a whole. This control mechanism usually includes a) analytical procedures used to expose a variance of actual costs from the company’s budgeted costs, b) diagnostic operations performed to establish the cause of such a variance, and c) corrective activities employed to realign the difference between the two types of costs.
In a Sentence:
- We’re using price control to ensure that the construction of our new office building won’t cost more than it should. Far too often construction companies try to exploit enterprises and ask for more money than agreed upon.
- Irwin was appointed the head of the cost control committee. His primary task was to ensure that production costs are aligned with those projected in the budget.
Synonyms and related words: statistical control, quality control, capacity control, management control, record control
