What are the five steps involved in implementing a cost control system?
The five steps are as follows:
1 . Understand the type of costs incurred by an organization.
2 . Communicate the need for cost consciousness to all employees.
3 . Educate employees in cost control techniques, encourage them to suggest ways to control costs, and motivate them to embrace the concepts.
4 . Generate reports that indicate actual results, compare budget to actual and calculate variances.
5 . Develop a view that the cost control system is a long-run process, not a short run solution.
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