Costs control

Abstract

The cost, as an instrument of financial administration control has the role to inform the decisional elements (the managers). It allows these ones to form a general opinion over the factory and at the same time to administrate the relations with the customers through the prices. Combined with other types of instruments (budgets, standards etc.), the information cost becomes a strong instrument of the financial administration control. The source of such an instrument can be found in the financial administration book-keeping. The qualitative features of the book-keeping information are judged from the point of view of the way in which these information contribute to the decisional process. The study of the costs is made in a domain of activity which is constituted from the organizational point of view in a factory and which represents a system made of subsystems hierarchal and functional classified. From the hierarchal point of view, the subsystems may be at the inferior level (jobs, which are usually placed under the authority of a responsible person) or at the medium level ( work centers) under the form of workshops,offices, stores for which the book-keeping costs organizes analysis centers. The value of the waste results from the cost of the finite products which generated them and it is added to the production cost of the finite products to which manufacturing they contribute.