Difference Between Cost Control And Cost Reduction

Cost control and cost reduction are two different methods of managing costs in a business. Cost control is the process of monitoring and managing costs to ensure they remain within a set budget. This is done by tracking expenses, setting budgets and monitoring performance against those budgets. Cost reduction is the process of reducing costs without sacrificing quality or service. This is done by identifying and eliminating unnecessary expenses, negotiating better prices with suppliers, and finding more efficient ways of doing things.

Cost control is an ongoing process, while cost reduction is a one-time effort. Cost control focuses on preventing costs from increasing, while cost reduction focuses on reducing existing costs. Cost control is more focused on the short-term, while cost reduction is more focused on the long-term.

In summary, cost control is the process of monitoring and managing costs to ensure they remain within a set budget, while cost reduction is the process of reducing costs without sacrificing quality or service.