Cost Control and Enhancing Competitiveness through Benchmarking: An Analysis

Abstract

Numerous innovative cost control practices have been evolved during the last two decades. The entire gamut of the cost accounting system has been broadened to equip and assist managers to better serve the needs of the customers and manage the firm’s business processes that are used to create customer value. The vital aspect here is providing customer value for less cost than its competitors, thus enhancing the competitiveness and profitability of the firm. Bench marking is one such innovative cost control tool which basically involves measuring an organizations operation, products, and services against those of its competition. It is a means by which targets, priorities and operational strategies are evolved based on external realities that will lead to competitive advantage which in turn improves the profitability and competitiveness of an organization.