ABSTRACT
This chapter presents several measures that serve as the foundation for cost control for an organization. They are standard costing, variance analysis, ratio analysis, cost internal control, performance auditing, information management, and planning and budgeting. Most discussions on cost control start with a measure that provides the basis that an organization can use to compare the actual costs of its operation against those planned or targeted, called standard costing. Once the type of standard an organization wants to use for cost control has been determined, the next step in the process is to set the standards to be used. Once the standards to be used in cost control have been determined, the next step in the process is to compare them against the actual cost. Auditing is a process of investigating the accuracy of the information a government provides on its financial, accounting, and other activities for a fiscal or accounting year.
