Definition of cost reduction, Managerial Accounting

Assignment Help:

Definition of Cost reduction

Cost reduction is planned positive approach to reducing expenditure. Cost reduction exercises are planned campaigns to cut expenditure. It is a continuous process with the object of getting a more or less permanent benefit.

Construction is defied by CIMA London as the achievement of real and permanent reduction in the unit cost of good manufactured or services rendered without impairing their suitability for use intended.

Thus the cost reduction is therefore the term used for planned and positive approach to the improvement in product design better technology and techniques incentive schemes new layouts and better method then very quickly the costs will grow back to their original size.

 


Related Discussions:- Definition of cost reduction

Explain the methods of pricing, Explain the Methods of pricing The fol...

Explain the Methods of pricing The following methods are used for intra company transfer pricing: 1) Total cost method: transfer is made at absorption cost which is the t

Determine cost pool and cost drivers, Determine Cost pool and Cost drivers ...

Determine Cost pool and Cost drivers Cost pool: it is another name given to a cost centre and,  therefore an activity cost centre may also be termed as an activity cost pool.

Advise c''man on the form of business entity he should select, Coleman, a m...

Coleman, a married taxpayer, is going to establish a manufacturing business. He anticipates that the business will be profitable immediately due to a patent he holds. He predicts t

What are the disadvantages of incremental budgeting, Disadvantages of incre...

Disadvantages of incremental budgeting a) Incremental budgeting suppose activities and method of working will continue in the same way b) No incentive for developing their d

Definition of cost reduction, Definition of Cost reduction Cost reducti...

Definition of Cost reduction Cost reduction is planned positive approach to reducing expenditure. Cost reduction exercises are planned campaigns to cut expenditure. It is a con

Basic assumption of transportation model, Basic Assumption of Transportatio...

Basic Assumption of Transportation Model The basic assumption of the model is that the transportation cost on a given route is directly proportional to the number of units tran

2010, how to journalize entry. purchased $150,000 of raw materials on accou...

how to journalize entry. purchased $150,000 of raw materials on account, terms of 2/20; n/30

Assignment help, I need help making sure I did my accounting assignment cor...

I need help making sure I did my accounting assignment correctly

Generates paychecks and management reports, Time sheets are collected in a ...

Time sheets are collected in a batch, and the information is manually keyed into the system. This data is now stored on a magnetic disk. An editing program is run, which verifies w

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd