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Define 1. cost control 2. cost reduction

      

Cost accounting, Bachelor of commerce

  

Answers


KevinNyabute
1.Cost Control is a process which focuses on controlling the total cost through competitive analysis. It is a practice which works to maintain the actual cost in agreement with the established norms. It ensures that the cost incurred on an operation should not go beyond the pre-determined cost.
2. Cost Reduction is a process, aims at lowering the unit cost of a product manufactured or service rendered without affecting its quality by using new and improved methods and techniques. It ascertains substitute ways to reduce the cost of a unit. It ensures savings in per unit cost and maximisation of profits of the organisation.
kevinnyabute answered the question on March 5, 2018 at 07:31


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