Difference between Cost
Control and Cost Reduction
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Cost Control
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Cost Reduction
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1. Cost control aims
at maintaining the costs in accordance with the established standards.
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1. Cost reduction is concerned with reducing costs. It
challenges all standards and endeavours to better them
continuously
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2. Cost control seeks to attain lowest possible cost
under existing conditions.
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2. Cost reduction recognises no condition as permanent,
since a change will result in lower cost.
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3.
In case of cost control, emphasis is on past and present
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3. In case
of cost reduction, it is on present and future.
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4. Cost control is
a preventive function
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4. Cost reduction is a corrective function.
It operates
even when an efficient
cost control system
exists.
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5.
Cost control ends when targets are achieved.
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5. Cost reduction
has no visible end.
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