COST CONTROLS Meaning and
Definition
-
Cost controls refer to the measures and strategies implemented by an organization to effectively manage and regulate its expenses and expenditures. This includes planning, monitoring, and evaluating costs to ensure they remain within specified limits, budgets, or targets.
The primary objective of cost controls is to minimize and optimize spending in order to maximize the profitability and financial stability of the organization. It involves identifying areas where costs can be reduced or eliminated, as well as implementing procedures and policies to prevent unnecessary or excessive expenses. This can be achieved through various methods such as setting budgets, establishing spending limits, negotiating favorable terms with suppliers, and improving operational efficiency.
Furthermore, cost controls involve ongoing monitoring and analysis of financial data to track expenses and identify any deviations from planned budgets. This allows organizations to take prompt corrective actions and make informed decisions to mitigate overspending or cost overruns.
In addition, cost controls often involve implementing internal controls and procedures to detect and prevent fraud, wastage, or abuse of organizational resources. This includes regular audits, internal checks and balances, and segregation of duties to ensure a transparent and accountable financial management system.
Overall, cost controls play a crucial role in maintaining the financial health and sustainability of an organization by ensuring that resources are used efficiently and effectively while minimizing unnecessary expenditures.
Common Misspellings for COST CONTROLS
- xost controls
- vost controls
- fost controls
- dost controls
- cist controls
- ckst controls
- clst controls
- cpst controls
- c0st controls
- c9st controls
- coat controls
- cozt controls
- coxt controls
- codt controls
- coet controls
- cowt controls
- cosr controls
- cosf controls
- cosg controls
- cosy controls
Etymology of COST CONTROLS
The word "cost controls" is a combination of two terms: "cost" and "controls".
The term "cost" comes from the Latin word "costus" which means "expense or expenditure". It has evolved over time to refer to the amount of money needed to acquire or produce something.
The term "controls" comes from the Latin word "contrarotulus" which means "a counter-roll" or "to check or govern". It has evolved to refer to methods, systems, or measures put in place to manage, regulate, or restrain something.
When combined, "cost controls" refers to the various methods, systems, or measures implemented to manage, regulate, or restrain the expenses or expenditures of a business or organization.
Infographic
Add the infographic to your website:
