Cost Control

Abstract

This chapter is chiefly concerned with the control of manufacturing cost; it is, however, desirable that some broader aspects of the financial function are also considered owing to their influence on the manufacturing system. Financial and secretarial responsibilities are normally combined under the financial director; the more important of these are listed below.

• (1) Advising the board on financial and legal matters.

• (2) Planning and control of expenditure in accordance with company policy.

• (3) Administration of budgetary control.

• (4) Design and control of management information systems.

• (5) Collection and payment of money, keeping books of account and the preparation of annual accounts.

• (6) Maintenance of statutory records concerning wages, salaries and national insurance, fulfilment of legal responsibilities under the Companies Act.

• (7) Arranging for the issue and transfer of shares, payment of dividends and notification of shareholders’ meetings.