• The control of distribution costs is a much more difficult problem than the control of manufacturing costs. In distribution, we have to consider the varying nature of the personality of seller and buyer.
• Distribution costs and effort must be planned, controlled, and monitored.
• In functional operation, distribution costs are analyzed in terms of individual responsibility.
• In looking at the nature of the expense, costs are segregated by month, and trends in distribution costs are examined.
• Direct costs are specifically identifiable to a particular segment. Examples of direct costs assignable to a salesperson are salary, commission, and travel and entertainment expense.
• Indirect costs are general corporate costs and must be allocated to segments (e.g., territory, product) on a rational basis.
• Semi-direct costs are related in some measurable way to particular segments.
• A comparison should be made between actual and budgeted figures for salesperson salaries, bonuses, and expenses.

full list via accounting-financial-tax

pic via zdnet

1: Control baseline costs

2: Acknowledge hidden IT spending impacts

3: Understand long-term application costs

4: Understand IT cost estimation truths

5: Leverage current system investments

6: Implement short-term cost cutting measures

7: Implement long-term cost cutting measures

8: Implement pricing and chargeback mechanisms

9: Use governance to drive IT investment decisions

10: Quantify the value/benefit proposition for IT investments

via techrepublic