Final answer:
The correct option is C). Cost control is the process of maintaining expenses to ensure they align with budgetary goals, which includes planning, tracking, and regulating expenses without necessarily reducing them.
Step-by-step explanation:
Cost control is a critical aspect of financial management within a company or project. The correct answer to the question 'What is cost control?' is c) Cost control is the process of maintaining expenses.
Effective cost control involves monitoring and regulating expenses to ensure they do not exceed budgeted amounts. This process includes planning, setting budgetary goals, tracking actual expenses against these goals, and making adjustments as needed to stay on target. It's not solely about reducing expenses; instead, it's about making sure that spending aligns with planned budgets and financial resources.
One common example of cost control is a business monitoring its operational expenses like materials, labor, and overhead to ensure that the total costs do not surpass the planned budget. Any variances are then investigated, and steps are taken to align with the budgetary limits, which may include identifying inefficiencies or negotiating better terms with vendors.