Abstract: A telephone and a method of controlling thereof for cost control are disclosed. The telephone includes a processor that controls operation of the telephone, and a memory which stores user defined parameters used to control this operation. The parameters include call allowance categories and numbers, and call restriction categories and numbers. The call restriction categories and numbers have maximum durations independent of each other. The processor allows calls associated with the call allowance categories and numbers, and times calls associated with the call restriction categories and numbers. The processor interrupts a restricted call when one of the maximum durations associated with the restricted call is reached. Further, the processor provides an alarm prior to interruption of the restricted call. An elapsed time of the restricted call is initialized when a security code is entered prior to interruption of the restricted call.