ECONOMICS

Detailed explanation-1: -Cost accounting helps manage and control costs by determining the various costs incurred in running a company. With this technique, a company can reduce operational costs and enhance work efficiency, thereby benefiting the company and its client.

Detailed explanation-2: -Cost Control focuses on decreasing the total cost of production while cost reduction focuses on decreasing per unit cost of a product. Cost Control is a temporary process in nature. Unlike Cost Reduction which is a permanent process. The process of cost control will be completed when the specified target is achieved.

Detailed explanation-3: -Definition. Cost planning and control is the estimation of costs, the setting of an agreed budget, and management of actual and forecast costs against that budget.

Detailed explanation-4: -Controlling costs: Cost accounting helps the management foresee the cost price and selling price of a product or a service, which helps them formulate business policies. With cost value as a reference, the management can come up with techniques to control costs with an aim to achieve maximum profitability.