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46 Examples of Cost Control

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Cost control is the process of applying due diligence and oversight to spending and acting to reduce costs. This doesn't always involve cost reduction but is a process of confirming that spending conforms to plans, policies and regulations. Cost control also monitors the performance of strategies, programs, projects and operations to ensure that spending achieves business objectives. The following are illustrative examples of cost control.
Cost control policies and procedures
Expense approvals
Reviewing and reducing expenses
Renegotiating contracts and prices
Rent and lease negotiation
Salary negotiations by a specialist in HR
Benchmarking costs to make sure they are competitive
Procurement processes and due diligence
Cost analysis to find optimizations
Streamlining processes
Discontinuing unprofitable products, services and activities
Business travel policies
Online meetings to reduce travel costs
Bulk purchasing
Tax planning
Total cost of ownership analysis such as buying vs leasing decisions
Building a cost-conscious culture
Leading by example such as executives who take economy flights
Internal controls such as segregation of duties
Freight cost reduction
Technology rationalization
Retiring legacy technologies
Shifting to low cost or no cost technologies such as open source
Tracking assets and inventory
Identifying and retiring unused assets
Recovering value from retired assets
Inventory management practices to improve inventory turnover
Outsourcing non-core work where partners are less expensive
Preventive maintenance
Validating project estimates with reference class forecasting
Reviewing employee compensation costs to identify excessive compensation
Reviewing employee expenses
Supplier consolidation
Managing the performance of suppliers to ensure they deliver
Internal cost audits
Third-party cost audits
Employee performance goals for cost optimization
Zero-based budgeting whereby budget must be reevaluated each year
Business cases for proposed investments and strategies
Project oversight
Mandatory governance reviews for projects that go over budget
Contract management for cost reduction
Automation of manual processes
Reducing rework and cost of quality
Cost reporting for departments, teams, projects and initiatives
Financial oversight and governance
Cost control also has a compliance role by implementing financial controls and oversights that may be required.
Overview: Cost Control
The process of applying due diligence and oversight to spending and acting to reduce costs.
Related Concepts
Next: Cost Reduction
More about cost control:
Budget Controls
Business Costs
Cost Control
Cost Reduction
Financial Controls
Internal Controls
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