For this purpose, management
Accountants uses two efficient tools, i.e. cost control and cost reduction.
Cost
control: -
Cost Control is a technique which makes available the necessary
information to the management that actual costs are aligned with the budgeted costs.
Cost
Reduction: -
Cost Reduction is a technique which we used to
save the unit cost of the product without compromising its quality. Thus, cost reduction ensures savings in per unit cost and maximization
of profits of the enterprise.
Cost Reduction aims at
cutting off the unnecessary expenses which occur during the production Process,