Basic control processInput > processing > output > meets standard?Steps in control process1. Establish procedures and standards
2. Train employees to follow procedures
3. Monitor outputs
4. Take action to correct deviationsControlA process that managers use to direct, regulate, and restrain actions of people to achieve desired results2 types of controlCost and sales controlCost controlUsed to regulate costs and guard against excessive costsSales controlUsed to generate appropriate incomeBudget becomes theStandard for comparison in cost control systemsVariable ratioRatio of variable costs to salesContribution rateThe part of each sales dollar that contributes to covering fixed costs and profitContribution marginThe difference between sales and variable costsBreakeven point on the graphThe point at which the line for sales crosses the line for total costs4 things managers can do to change the breakeven point1. Increase prices
2. Decrease variable costs
3. Increase sales volume
4. Reduce fixed costs
