Abstract

The purpose of this research is to explain the function of budget planning of
project cost as a tool of cost control at company and form of control which will be
done by company management in reducing existence of deviation. The data was
obtained directly from Purworejo’s Neverland Development company. This
research uses variance analysis method, data obtained in the form of budget plan
and its realization as well as direct interview.
Based on the result of the research, the difference between budget of project
cost and its realization happened the advantageous difference in the calculation of
three types of cost, namely direct material, direct labor and the difference of
project overhead cost. This means that, the cost budget can be used as a cost
control tool within the company. Cost budgeting can be made as a work guide or
reference in the creation of a company project in evaluating the cost control that
occurs in the company. With the budget will reduce unexpected expenses and other
costs beyond the budget
Keyword: Budget, Control, and Cost