What is cost controlling?

Answer 1

By reduction in operating items and using recycle items then we can control cost by using those resources which we already used it

example if the guest used half shampoo, and he threw it but at the same time if we collect it in large quantity and we refill it it reduce the cost.

Answer 2

let us look at the concept of cost. for an accountant cost means what one pays in purely monetary terms to get the goods or service at the place and condition required. for an economist it may mean monetary as well as other intangibles to acquire the goods or service. so no cost is actually always controllable or non controllable it is simply at the time of decision making that is important. Say you are operating a hotel and you enter into an agreement with a pest control agency to control the pest in your hotel. at the time of entering into the contract the cost is controllable you can decide not to enter into a contract and do it yourself. however once you enter into a contract it becomes uncontrollable - assuming you to be a honest person who has intention to pay for the services. now look at the amenities you provide your guests they are even controllable at one point of time and next they become uncontrollable. say you decide to purchase xyz amenities. and you buy them once you buy them they become uncontrollable cost and the value of the goods become dead cost. means if you dont like the amenities you either have to throw them away or sell them without using them the value you receive is salvage value to your dead cost. the only difference between the two examples is that one becomes controllable after the end of the contract and the other becomes controllable after 3 months when your stock of amenities run out. The classification is important to help you to make decisions. however the classification is irrelevant once the decision is made. periodically a cost may become uncontrollable or controllable.

Answer 3

let us look at the concept of cost. for an accountant cost means what one pays in purely monetary terms to get the goods or service at the place and condition required. for an economist it may mean monetary as well as other intangibles to acquire the goods or service. so no cost is actually always controllable or non controllable it is simply at the time of decision making that is important. Say you are operating a hotel and you enter into an agreement with a pest control agency to control the pest in your hotel. at the time of entering into the contract the cost is controllable you can decide not to enter into a contract and do it yourself. however once you enter into a contract it becomes uncontrollable - assuming you to be a honest person who has intention to pay for the services. now look at the amenities you provide your guests they are even controllable at one point of time and next they become uncontrollable. say you decide to purchase xyz amenities. and you buy them once you buy them they become uncontrollable cost and the value of the goods become dead cost. means if you dont like the amenities you either have to throw them away or sell them without using them the value you receive is salvage value to your dead cost. the only difference between the two examples is that one becomes controllable after the end of the contract and the other becomes controllable after 3 months when your stock of amenities run out. The classification is important to help you to make decisions. however the classification is irrelevant once the decision is made. periodically a cost may become uncontrollable or controllable.

Answer 4

Controllable cost refers to costs in an operation that are considered controllable. These costs typically include direct overhead, labor, and materials.

Answer 5

It is intended to carry out operations at reasonable cost without sacrificing the quality of service and production