Cost control is in our hands. Help from others is also needed to grow income. That is why most managers prefer cost control.
Expenditure control is all about eliminating bad things and not adding good things. Removing bad things is more accessible than adding good things. So we prefer cost control.
Saving electricity, limiting the use of telephones, reducing overtime work, repairing old equipment and using it continuously, and using old foam, old wooden furniture, and old equipment are considered significant here. There is a possibility of saving money for the organization through all these actions. But in each of those tasks, there may be seeds against revenue generation, as well as seeds against indirect cost control.
New computers are more energy efficient than old computers and are also much faster. New refrigerators use more electricity than old ones. Reducing the number of light bulbs to save electricity can harm the establishment’s comfort. Also, low light can damage the eye health of employees.
That does not mean, however, that should not expenses controlled. It is that we should be concerned about the traditional result of dealing with it.
Therefore, should be controlled expenditure in such a way that it does not harm the income. The dedication to revenue growth also makes “spending control” less critical. That is why devoting more attention to “revenue growth” leads to the development of an organization.
Cost control is a defensive tactic while increasing revenue is an aggressive tactic. Even military experts say that “attack is the best defense.“
We put more emphasis on “revenue growth” because many managers emphasize the opposite and stagnate their organizations. That is because they are constantly seeking protection.