What Do You Mean By Cost Control Analysis?


1 Answers

Arianna Vaccaro Profile
Arianna Vaccaro answered
Cost control analysis involves a systematic approach to cutting costs and getting a project finished as close to its original set budget as possible. It is implemented by most businesses and managers that want to get as much value for money as possible. If this is completed successfully, it will help increase the company's revenue and profits.

Cost control analysis involves:

  • Breaking down each individual component of a project and analyzing the costs for this part. This is kept separate from the project as a whole and each component is then brought together in a final report
  • Collating data and figures that can then be used to analyze the effectiveness of cost and finance in particular areas
  • Considering the amount of money being spent in particular areas such as staff illness, intervention costs and cost of materials for example. Costs may also include things such as labor, equipment, supplies and buildings
The overall goal of cost analysis is to identify the least expensive way of achieving a particular output or finishing a particular project

It is also used by experts within different economic valuation frameworks. These include cost-utility analysis, cost-effectiveness analysis and cost-benefit analysis.

Answer Question