Cost are not only to be controlled but constant efforts are to be made for reducing them, Cost reduction implies real and permanent reduction in the unit cost of goods manufactured or service rendered without impairing their suitability for the use intended. Value analysis, time and motion study standardization, simplification, etc. are the major techniques. Cost reduction is to be understood as the acheivement of "real" and permanent" reduction in the unit cost of goods manufatured or services rendered without impairung their suitability for the use intended. Cost accounting is helpful to managment in cost reduction through the techniques of budgetary control, standard costing, material control, labour control and overheads control.