cost review is a process used by business organizations to identify, assess and manage costs. The goal of cost review is to ensure that expenses are incurred in the most effective and efficient way possible.
There are a number of steps involved in cost review. The first step is to identify the costs that are associated with a particular project or activity. Next, the costs must be evaluated to determine which ones are the most important. Finally, the most important costs should be allocated to the appropriate projects or activities.
1) Identification of costs: The first step in cost review is to identify the costs associated with a particular project or activity. Costs can be identified in a number of ways, including through records of expenditures, interviews with employees or customers, or surveys.
2) Evaluation of costs: After costs have been identified, they must be evaluated to determine which ones are the most important. This evaluation can be based on a variety of factors, including the cost of the resource required to perform the project or activity, the amount of time needed to perform the project or activity, or the impact of the project or activity on the organizations overall goals.
3) Allocation of costs: Once costs have been evaluated and determined to be the most important, they should be allocated to the appropriate projects or activities. This allocation can be done manually, through a computer program, or through a combination of both methods.
Cost review is an important process used by business organizations to ensure that expenses are incurred in the most effective and efficient way possible. By identifying, evaluating and allocating costs accordingly, businesses can ensure that their projects are completed on time and within budget.