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Foundations of Cost Control PDF Form

Foundations of Cost Control PDF Form

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hi welcome to education leaves in this video the topics i am going to discuss are what is cost control how to cost control and why cost control is necessary for a business [Music] let's start the video what is cost control cost control is the practice of identifying and reducing business expenses to increase profits and it starts with the budgeting process a business owner compares the company's actual financial results with the budgeted expectations and if actual costs are higher than planned management needs to take action as an example a company can obtain bids from different vendors that provide the same product or service which can lower costs cost control is an important factor in maintaining and growing profitability controlling costs is one way to plan for a target net income which is computed using the following formula sales minus fixed cost minus variable cost is equals to target net income to reach the goal management reviews both fixed and variable costs and attempts to re

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