Explain the characteristics of cost reduction, Managerial Accounting

Assignment Help:

Characteristics of cost reduction

1) Cost reduction must be real : said through increase in productivity change in product design improvement in technology etc.

2) Cost reduction must be permanent : temporary reduction in cost due windfalls change in tax rate changes in market prices etc do not come in the purview of cost reduction.

3) Cost reduction must not impair : the suitability of products or services for the intended use. In other words cost reduction should not be at the cost essential characteristics of the products or service.

 

 


Related Discussions:- Explain the characteristics of cost reduction

Terms of payment, Terms of payment vary broadly in practice. At one conclus...

Terms of payment vary broadly in practice. At one conclusion, if the seller has financial resources, she or he may extend liberal credit to the buyers, conversely the buyer pays in

Expected future warranty claims, 1. Paid $350,000 to purchase furniture and...

1. Paid $350,000 to purchase furniture and leased it to DEF Corp. for 5 years. DEF agreed to pay $89,955 on July 1 for each of the next 5 years.  At the end of the lease term we ex

Cost comprise impact, Cost comprise impact Some of the policy choices w...

Cost comprise impact Some of the policy choices which tend to have the maximum impact on cost comprise: Product performance, configuration, and characteristics Mix and

Willco Inc. manufactures electronic parts, Willco Inc. manufactures electro...

Willco Inc. manufactures electronic parts. They are analyzing their monthly maintenance costs to determine the best way to budget these costs in the future. They have collected the

Payback period, if equipment will be depreciated on a straight-line depreci...

if equipment will be depreciated on a straight-line depreciation basis over a five year period with an estimated residual value, what do I do with this information in a investment

Relevant Cost, Outline Five characteristics of relevant cost

Outline Five characteristics of relevant cost

Accounting rate of return - arr, ARR gives a fast estimate of a project's v...

ARR gives a fast estimate of a project's value over its useful life. ARR is derived by determining profits before taxes and interest.   ARR is an accounting technique used fo

Questions., how long will it take to get answers after question are submitt...

how long will it take to get answers after question are submitted

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