ABSTRACT
The ledger will most probably be set up in a computer, either in a central management information system or using one of the more powerful project management packages. The method is very difficult to apply successfully because of the difficulty in obtaining and maintaining accurate data. The principal purpose of cost control is to ensure that no preventable wastage of money or unauthorized increase in costs is allowed to happen. The costs of bought-out supplies and services are ordained when the purchase orders are negotiated and issued. This might be a long time before the goods are actually received and issued. Purchasing cost control can only be exercised, therefore, when each order is being placed. A accurate approach to monitoring purchasing cost performance is to tabulate actual cumulative project purchasing costs against the estimates for the corresponding items or work packages.
