Cost Control and Reduction

One of the primary functions of cost accountancy is control and reduction of cost. While cost control deals with not allowing the cost to rise beyond the planned levels, cost reduction involves a real and permanent reduction in unit cost of production rendered without impairing their suitability for the use intended. Cost control ends when […]

Value Analysis

By continuously improving the performance of a product / service, its value could be increased thereby leading to reduction of costs. This concept is the base for Value analysis. Value of a product is a relationship between functions it performs and its cost of manufacture. It could be mathematically be expressed as follows: VALUE = […]