The management must be able to keep costs under control for the company to operate profitably. A business will not last very long if its expenses exceed its income. Despite the fact that cost control systems are typically created as an adjunct to accounting, they must be usable and clear. Thus, the manager needs to carry out this function to make the company profitable as much as possible.
Whose job is it to keep an operation's costs under control?
- Thread starter Shavkat
- Start date
Everything about keeping production cost under control is also about cutting out all the unnecessary expenses that is going to increase the cost of production and reduce profit making.
It is work of operation manager to keep expenditure or costs to remain low. But many organizations don't have operation manager. All the works falls on the table of the manager. In a company that have proper setting, it is the work of operation manager to manage and reduce costs of operations.
It is the job of the accountant since it is his or her duty to manage the finances of the organization. He advises on measures to cut down operational cost.
It is very wrong when a business is having a higher cost of production because it is going to affect the level of profit-making they will be experiencing in that business.
Cost control is important for the success of any business managers needs to be able to keep track of expenses and ensure they do not exceed the company income a well design cost control system can help achieve this goal and it should be simple and clear to use for managers and employees.
I believe this is strictly the work of a manager. It is the duties of the manager to make sure that that the company does not misuse their resources, the manager has to make sure the company get what they want in a much more cheaper rate.
Very often, the Operations Manager and the Financial Controller work together to keep an operation's cost under control. The Operations Manager would prepare a budget for his/her department. It needs to be approved by the Financial Controller.
The finance department and the production manager should put their heads together and work out points to reduce expenses in the organization.
The operation cost should be kept under control because it will be reflective in the price of product.
As long as the business actually have a position of a manager in the company, I believes that it is his duty to make sure that everything goes right and the company always been in profit making.
It is not just the job of the manager but also of the production, research and the accounting departments to work together to minimize costs. The accounting departments analyses the costs, the research proffers alternatives and the production implements alternative processes proffered.