How To Reduce The Cost

Table of contents:

How To Reduce The Cost
How To Reduce The Cost

Video: How To Reduce The Cost

Video: How To Reduce The Cost
Video: BUSN02: Cost in Business Operations 2024, May
Anonim

The cost price today is a matter of the success of any enterprise. She decides everything. And this is not an exaggeration. The higher the competition in the market, the less chances of survival for enterprises with a high production cost.

How to reduce the cost
How to reduce the cost

Instructions

Step 1

Start by collecting information: take data from the last few periods about all the costs incurred by your business.

Step 2

Divide expenses into nominally fixed and nominally variable costs. Group the data by type and by cost direction. For example, items of fixed costs for accounting: wages of employees of the accounting department; accruals for wages of employees of the accounting department; expenses for stationery for accounting; depreciation of equipment in the accounting department; expenses for mobile communication of the chief accountant, etc.

Step 3

Outline a plan to reduce costs by reducing each type of expense (cost planning). Reduce costs by conserving resources. Calculate wages based on the results of the work of the shop, department, brigade. Apply new types of materials, new technologies.

Step 4

Monitor the implementation of the planned plan to reduce the cost of production and incentivize employees for the results achieved.

Step 5

Implement a budgeting system in the enterprise - this will improve the efficiency of resource management and will reduce costs.

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