Difference between Cost Control & Cost Reduction

Difference between Cost Control & Cost Reduction 

Cost Control Vs Cost Reduction 

1. Meaning :- Cost control involves managing and keeping expensive within predetermined budget or limit while cost reduction on lowering expenses over time.

2. Characteristics:- Cost Control maintenance spending within bound while Cost reduction actively seeks to decrease expenses.

3. Process :- The process of cost control is to set up target, investment variation and taking remedial measures to correct them while Cost reduction is not contendend marely with maintenance of performance according to standards.

4. Functions:- Cost control is preventive functions and cost are optimise before they are inkar while cause reduction is a collective functions it operates even when efficient cost control system exists. 

5. Objectives:- efficient cost control insures optimal utilisation of resources printing wastage and enhancing productivity while in case of cost reduction by lowering costs, businesses can increase their profit margin, thereby improving their financial health.

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