Distinguish between cost control and cost reduction.

Cost Control Cost Reduction 1. Cost control aims at maintaining the costs in accordance with the established standards. 1. Cost reduction is concerned with reducing costs. It challenges all standards and endeavours to improvise them continuously. 2. Cost control seeks to attain lowest possible cost under existing conditions. 2. Cost reduction recognises no condition as permanent, since a change will result in lower cost. 3. In case of cost control, emphasis is on past and present. 3. In case of cost reduction, it is on present and future. 4. Cost control is a preventive function. 4. Cost reduction is a corrective function. It operates even when an efficient cost control system exists. 5. Cost control ends when targets are achieved. 5. Cost reduction has no visible end and is a continuous process.