Cost control and its role in controlling company operation
Cost control and its role in controlling company operation

Summary/Abstract: The paper presents the concept of cost control and its application in the task of managing an enterprise. Essential qualities of cost control are discussed as part of the goal-oriented company operation management subsystem. The position of cost control in the broad context of a company control system is presented, as well as its correlations with other subsystems. A division of cost control into strategic and operational cost control is introduced, followed by an overview of instruments allocated to each category. The paper concludes with an analysis of correlations between cost control on the one hand, and cost accounting and cost management on the other, as a set of complementary sources of information for company management purposes. The author provides arguments in support of the thesis that cost control is an important concept in modern management accounting that offers substantial improvement of company operational effectiveness.

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