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Controlling cost means monitoring and controlling updates and changes to costs, budget, and the cost baseline of the project. Monitoring and controlling costs has two dimensions to it: expenditure of project funds and the work performed as a result of those expenditures. One major aspect of cost monitoring and controlling is to determine the relationship between the expenditures and the accomplishments. The cost performance depends on this relationship. The other main aspect is to control the changes to the approved cost performance baseline
To be more specific, monitoring and controlling the project cost includes the following tasks:
• Influence the factors that can create changes to the approved cost baseline.
• Monitor the following:
o Work performed against the funds expended
o Variance of cost performance from the approved baseline • Prevent unapproved changes from creeping into cost reports and expenditures.
• Act to keep cost overruns within the planned acceptable limits.
• Ensure the following:
o Change requests are dealt with in a timely fashion and managed as they occur.
o Expenditures do not exceed the approved budget by period or by total amount. Any change to the budget must be approved before implementation. • Communicate with the appropriate stakeholders about the cost associated with the approved changes.
Cost is monitored and controlled by using the Control Cost process
What else can I help you with?
What are the objectives of cost control in an organization?
I don't cares
Example for cost unit and cost center?
if Edhi is cost centre than the cost unit for this organization will be the affected people who need the service.
Does cost allocation provide relevant information?
Yes, cost allocation allows managers to study how product costs are affected by changes in the environment. They also help the organization determine profit maximization strategies.
Who are the stakeholders of a computer based information system?
A stake holder are a person, group, organization, or system who affects or can be affected by an organization's actions. A stake holder are a person, group, organization, or system who affects or can be affected by an organization's actions.
Who prepares the independent cost estimate for an ACAT ID program?
The independent cost estimate for an ACAT ID program is typically prepared by an independent cost analysis organization outside of the program management office. This organization is responsible for providing an unbiased assessment of the program's cost, helping to ensure accurate budgeting and cost control.
Is it true or false that a cost that will not be affected by later decisions is termed an opportunity cost?
A cost that will not be affected by later decisions is termed a sunk cost.
Individuals and groups affected by an organization's actions are?
It has to be...............................beneficiaries
What concepts of organizational internal control are very similar across various models?
internal control is not only policies and procedures to help an organization accomplish its objectives but also a process or system affected by people. In these models, people are perceived to be central to adequate internal control.
Does the katipunan bank impliment a quality control in their organization?
Does the katipunan bank impliment a quality control in thier organization?
What are types of control in business organization?
· Feedback control · Concurrent control · Feedforward control
How has the organization been affected due to use of information system?
answer
What is the Difference between cost management cost control and cost reduction?
Cost Control simply means keeping cost within desired level or planned level and the essential mechanics of Cost control is budgeting and budgetary control. Cost reduction on the other hand is a deliberate attempt to lower the cost of business operation which in most cases could result in value trade-off. Cost Management however is that planned, organised, systematic cost restructuring programmes aim to ensure that cost is commensurate with the level of operation of an organization. It can also be defined as the planned effort to ensure that organization operates within cost effective and efficient zone without compromising quality or value. Therefore the key line dividing cost reduction and cost managemnet is the issue of value or quality. In the process of Cost Management Cost would be reduced but without compromising value but not all cost reduction process guarantees value retention. The success of any cost management effort is influenced by the cost management mindset and cost management technical skill capacity of the Manager. Today, given the importance of cost to the survival of organization, it has been advocated that there should be adequate capacity building in the skill to manage cost as well as a full institutionalization of the distinct practice of cost management as a discipline. This I subscribe to.
