On the Essence of Cost Control.

The essence of cost control is an accounting report of variations between actual and standard. These reports may be prepared in physical terms or in terms of dollars. In any event, these reports are the signal that waste and inefficiencies have occurred. To control these wastes and inefficiencies is a prime goal of management. Thus, the variances must be analyzed in terms of root causes which must then be eliminated.

Required:

Evaluate the above paragraph in terms of the materials presented in Chapter 9.

LO.1