Cost

 There are many concepts about cost. These concepts are as below:

According to the first concept the money we spend to produce any product and service. This money is called cost. 

In other words, we can say that the value of money that has been spent to produce any product or service. This value is called cost.

According to the second concept, all efforts, materials, resources, and time spend to produce any product and service the value of all these things is calculated. This value is known as cost.

Cost Control- It is a wide range concept. The process of making policy rules, regulations, laws to minimize our expenditure to produce any product or service. This process is called cost control.

In other words, we can say that the process of comparing expenditure to budget and minimizing expenditure. This process is called cost control.

Nature of cost control:

There is much nature of cost control. These natures are as below:

1. It is the internal activity of the organization.

2. It belongs to the previous data of an organization.

3. It is a short-term approach.

4. It belongs to the total expenditure of the organization.

5. It is a future-oriented activity.

6. It is a complex activity.

7. It is a preventive activity.

8. It always focuses on the previous budget of the organization.

The objective of Cost Control: 

Cost control is an important function of a manager. It plays an important role in the growth, development of the organization. The objective of cost control are as below:

1. To earn a maximum profit- It is the first objective of cost control. Every organization wants to maximize the profit of the firm. There are many techniquesmaximizingsing profits. These techniques are proper planning, maximum production, and cost control. Among all cost control is one of the popular techniques of maximizing production.

2. To reduce cost- There are many functions organizations perform. These functions are production, demand forecasting, supplying, warehousing, communicating, and so on. They spend more money to perform an above-explained function. Cost control is an important technique that is used to reduce costs. 

3. To achieve an objective- There are many objectives before the organization. These objectives are survival, sales revenue maximization, profit maximization, maximum growth, and so on. Cost control plays an important role to achieve above explained objectives. So, it is also an important objective of the organization. 

(4)Proper utilization of resources - it is also an important objective of cost control every organization has a scarcity of resources whereas they have to perform the maximum function. Cast control helps us to save our resources and we it in such type of way that perform its function by effective efficient economical way.

(5)growth- every organization wants to grow in a fast way many problems stop the growth of the organization. Cost control is an important technique that removes all warriors that present on the path of growth and increase its efficiency to increase the growing organization.

(6)To increase the efficiency of the organization - every organization make policy program, rules, regulation, low, that increase the efficiency of the organization cost control is also an important technique that held the efficiency of the organization.