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

Accrued expenses, The other source of spontaneous short-term financing is t...

The other source of spontaneous short-term financing is the accrued expenses which arise by the general conduct of business. An accrued expense is an expense which has been incurre

Amount of working capital, Number of Operating Cycles: The number of opera...

Number of Operating Cycles: The number of operating cycles in a period is determined by dividing the number of days in a year i.e.365 by the length of net operating cycle. Express

Mgt acc., company jobcosting system

company jobcosting system

Explain decision unit - zero base budgeting, Explain decision unit - zero b...

Explain decision unit - zero base budgeting Decision units: an organization is divided among decision units. The manager of the decision unit justifies the relative budget

Budgetary styles, their definitions and the advantages and disadvantages

their definitions and the advantages and disadvantages

Two-person-zero-sum games, Two-person, zero-sum games Two players X & Y...

Two-person, zero-sum games Two players X & Y have two alternatives. They show their choices by pressing two types of buttons in front of them but they cannot see the opponents

What is competition oriented pricing policy, Competition oriented pricing p...

Competition oriented pricing policy Most companies fix the price of their products after a careful consideration of the competitor's price structure. Deliberate policy may be f

Profi t Planning, SK 2 Chapter 10: Master budgeting Objective How organisat...

SK 2 Chapter 10: Master budgeting Objective How organisations strive to achieve their financial goals by preparing a number of budgets that together form an integrated business pla

Calculate transfer price - management control system, Calculate Transfer Pr...

Calculate Transfer Price - Management Control System? Question: Compute the Transfer Price for Product X and Y and the Standard Cost of Product Z as the intra company pricing r

Definition of the mission and goals of the organization , Definition of the...

Definition of the Mission and Goals of the Organization Generally the organization has already established mission and aim statements. Though, it may be essential to redefine

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