Cost Control

3. Who is Involved?

3.1 Each cost centre is usually the responsibility of one manager.

• Some costs can be easier to control if one manager is responsible for that cost throughout the organisation.

3.2 Involve employees in cost control.

• Employees can suggest cost-saving ideas, especially if there is an incentive to do so.Ask what causes them problems or wastes their time.
• Employees are more likely to co-operate with cost control initiatives if changes are explained to them.

3.3 Include your customers and suppliers.

• Ask your customers if you are providing them with anything they do not need.
• Your suppliers will know what other purchasing options are available that might suit your business.

3.4 External consultants can be a useful resource (see 7).