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a.Determining inventory valuation using LIFO.
b.Estimating the overhead costs included in transfer prices.
c. Controlling indirect costs of future production .
d.Determining the cost of specific project .
Cost control is concerned with measuring variances from the cost baseline and taking effective corrective action to achieve minimum costs. Procedures are applied to monitor expenditures and performance against the progress of a project. All changes to the cost baseline need to be recorded and the expected final total costs are continuously forecasted. When actual cost information becomes available an important part of cost control is to explain what is causing the variance from the cost baseline. Based on this analysis, corrective action might be required to avoid cost overruns.
Determining the cost of specific projet
