The following requirements are to be fulfilled to implement successful cost control:
● A plan and a set of well-defined responsibilities to all executives are essential.
● Clear definition of tasks for performance and cost to execute those tasks.
● A fixed responsibility, in case of deviation between targeted and actual.
● Prompt collection of performance data from each department of an organization as the delay in information equals to no information and the management is unable to take correct decision due to lack of complete information.
● Highlights of good and bad, both performances to enable the management to take corrective steps.
● Reward for good performances and Punishment for the poor ones.