“Cost control is the efforts an organisation makes to reduce, monitor and evaluate expenditure.”

Whilst controlling costs brings many benefits it also has its disadvantages:

Advantages

• Lowers expenditure and saves money
• Facilitates accounting and helps financial planning
• Helps an organisation become more sustainable
• Reduces the need for grants and funding

Disadvantages

• Creates an atmosphere of thriftiness and subsequently employees worry about their jobs
and the future sustainability of the organisation
• Takes time to implement cost control measures