In this post, we are going to see how Rabio can be implemented with Cost Control operations and procedures.
In general, cost control is the procedure to identify and reduce business expenses to increase profits. Cost control starts with the budgeting process. In any business that follows a cost control procedure, it all comes to compare the company's actual financial results with the budgeted expectations. If actual costs are higher than planned, management has the information it needs to take action.
You can read a definition for Cost Control in Investopedia.
For the development of a project, it is necessary a Cost Breakdown Structure (CBS) which is a cost allocation to the lowest level of the Work Breakdown Structure (WBS).
The CBS is a breakdown of the costs of the various components and elements of the project's structure including all works or services done by the subcontractors. The CBS is used to continuously check & compare the actual costs with the budget, and integrate to the cost control management system.
Rabio's core structure can follow a cost breakdown structure using cost centers and cost categories.
The basics of a cost breakdown structure which are Budget, Actual Costs, Earned Value Management, can be implemented in Rabio's database. With the use of the smart reporting system, Rabio can produce a series of reports that can give to management all the necessary information for critical decisions.
In most cases, cost control departments are using tons of spreadsheets files. Using Rabio does not mean that spreadsheets will stop being used, but they will not be the main data recording system. This role can easily go to the Rabio software system. With the powerful database back end will take over the hard work ensuring data integrity, online multi user-access, data integration with external data sources and flexible reporting capabilities.
Rabio's online demo comes with cost control data for two construction projects which are a simple and an extended case. The demo user has access to data and full reporting of :
In both cases, cost centers are grouped as :
Categories are also grouped.
Rabio's demo is available online.
To access the demo you can follow the instructions here.