PROJECT REPORT ON COST REDUCTION AND CONTROL

Submitted By

P.INDRANI REDDY

Hall ticket number 56153702

In partial fulfilment of the award of the degree of

BACHELORS OF BUSINESS MANAGEMENT AND TECHNOLOGY

DEPARTMENT OF BUSINESS MANAGEMENT

Under the esteemed guidance of

Mrs.VamshiMohana Reddy Head Of Department BBMT

Mrs.NishaMathur- Professor (BBMT)

RBVRR WOMENS COLLEGE

2014-2017
 RAJA BAHADUR VENKAT RAMA REDDY

WOMENS COLLEGE

NARAYANGUDA, HYDERABAD 27 A.P

Bachelor of Business Management & Technology

CERTIFICATE

This is to certify that Ms. P. INDRANI REDDY of B.B.M.T III Year VI

Semester bearing Hall ticket No 56153702 has successfully
completed the Major Project work during the academic year 2013-
2016 in partial fulfillment of the award Degree Bachelor of
Business Management & Technology.

Signature of Internal Examiner Signature

of External examiner

Signature of HOD
 DECLARATION

I hereby declare that my project report titled Accounts payable

management in EFIN CORPORATE CONSULTANCY, was completed under the
esteem guidance of Mrs. NishaMathur in partial fulfillment of my Bachelors
Degree in Management and Technology. The observations and conclusion
written in the report are based on the data collected by me while preparing
the project report. I further state that I am alone responsible for the report in
case of any omission if any.

P.INDRANI REDDY

56153702
 ACKNOWLEDGEMENT

It is a genuine pleasure to express my deep sense of thanks and gratitude to

many people who helped and supported me in completion of my Project.

My deepest thanks to our Lecturer, Mrs.Nisha Mathur, the Guide of the

project for guiding and correcting me with attention and care. Her prompt
inspirations, timely suggestions with kindness, enthusiasm have enabled me
to complete my project.

I express my thanks to, Mrs.Vamshi Mohana Reddy, Head of Department,

Bachelor of Business Management and Technology for extending her support.

My deep sense of gratitude to Mr.Srinivas mankala , for his support and

guidance. Thanks and appreciation to the helpful people at EFIN CORPORATE,
for their support.

I would also thank my Institution and my faculty members without whom the
project would have been a distant reality. I also extend my heartfelt thanks to
my family and friends.
 ABSTRACT
Cost Control is The process of monitoring and regulating the
expenditure of funds is known as cost control. In other words, it
means to regulate/control the operating costs in a business firm.

Cost Reduction is The process of identifying and eliminating

unnecessary costs to improve the profitability of a business is
known as cost reduction.

Cost control and reduction refers to the efforts business managers

make to monitor, evaluate, and trim expenditures. These efforts
might be part of a formal, company-wide program or might be
informal in nature and limited to a single individual or
department. In a small business the focus is often on selling and
servicing the customer.

CHAPTER_
INDRODUCTION

Cost control and cost reduction are management efforts for

saving costs and reducing expenditure. Controlling costs is
basically keeping the amount spent on a particular product,
process, activity or element of cost whether fixed or variable as
per the budgeted amount or standard costs. Cost reduction is a
reduction in the overall cost of production per unit through
improved methods of production, process, technology, superior
quality materials, innovation and technology. It can improve profit
by saving product, manufacturing and life cycle cost by
implementing cost reduction strategies.

Objective of the study:-

1. To understand the basic concept of Cost, Cost Control, and

Cost Reduction
2. To study various Tool and Techniques available for Cost
Control and Cost Reduction
3. To study the Cost Control and Cost Reduction techniques
used in manufacturing sector.
4. To analyze the changes in component cost after
implementing these techniques

Scope of the study:-

Cost reduction is attainable in almost all areas of business
activities. There is perhaps no situation which cannot be
improved. It covers a wide range like new layout, product design,
production methods, materials and machines in factories as well
as in offices, innovation in marketing etc. it may also extend to
specified activities like purchasing, handling, packaging, shipping,
warehousing, marketing, use of administrative facilities and even
the utilization of financial resources.

1. Lack of information about raw material, processes, products,

components etc.

2. Lack of utilization of ideas generated form performance and

economic analysis.

METHODOLOGY:-
There are two methods of Data Collection. The method adopted
for this study is Primary Data and Secondary Data as well. This
data includes Companys Profile, Employees Experience,
presentations, Exploratory and Descriptive Methods which
includes books, journals and various websites for seeking
information regarding the accounts payable management.

LIMITATION OF THE STUDY:-

1. Cost control and cost reduction efforts can be very

successful, assuming that the underlying assumptions are
correct.
2. Serious errors can be made when cost-reduction efforts
interfere with flexibility and improvement of processes.
3. Flexibility is usually in the form of being able to quickly
change production lines in a manufacturing environment
or alter marketing strategies midstream.
4. Process improvement requires recognition that many
small improvements lead to large ones.
 CHAPTER-2
COMPANYS PROFILE

EFIN CORPORATE CONSULTANCY:-

EFIN CORPORATE CONSULTANCY is managed by professionals with global
experience in blue chip company. Well trained qualified staff to support
clients on finance and accounting functions including US GAAP. Works as
extention of clients office to provide 24/7 services moduled to provide
quality and timely services with substantial cost savings to clients. Fully
operational US and Indian office.

Objectives:-
To fulfill the clients requirements.
 To provide end to end accounting functions with support to
US offices.

To provide back end support for daily operations and

accounting functions to increase efficiency and quality.

Finance and accounting functions :-

Accounts payable.

Invoicing and payment application.

Bank Reconciliation.

Maintain chart of accounts.

Book keeping.

Audit scheduling.

Management report preparation.

Chapter-3

Importance of Cost Reduction and control:-

1) It leads to an improvement in the competitive capabilities of
the company and thereby ensures its survival, growth and
prosperity

2) It ensures reasonable prices to customers by not passing on

the inefficiency of the business itself purpose for cost control and
reduction
3) To create cash for reinvest in R&D

4) To reduce manufacturing cost to stay competitive

5) To lower cost of service in order to provide additional services

6) To become more efficient

Importance of cost control:-

1) Enable firm to achieving defind objective

2) Proper utilization of firms resource

3) Growth and survival of a firms

4) Make the organization efficient

Differences Between Cost Control and Cost Reduction

The following are the major differences between Cost Control and Cost
Reduction:
The two most important functions of cost accounting are cost control and cost
reduction. Cost Control is a technique which provides the necessary information
to the management that actual costs are aligned with the budgeted costs or not.
Cost Reduction is a technique used to save the unit cost of the product without
compromising its quality. Now, you can see the differences between cost
accounting and cost control.

BASIS FOR COMPARISON COST CONTROL COST REDUCTION

MEANING A technique used for A technique used to economize

Maintaining the cost as per the unit cost without lowering

The set standards is known as the quality of product is

Cost control. Known as cost reduction.

SAVING IN Total cost Cost per unit

RETENTION OF QUALITY Not Guaranteed Guaranteed

NATURE Temporary permanent

EMPHASIS ON Past and present cost present and future cost

ENDS WHEN The pre-determined target No end

Is achieved.

TYPE OF FUNCTION Preventive corrective

The Disadvantages of Cost Control & Cost
Reduction
Reduces the flexibility and process improvement in a
company.
Restriction on innovation.
Requirement of skilful personnel to set standards.