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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.
Marginal cost or incremental cost pricing method: Here the company may work on the premise of recovering its marginal cost and getting a contribution towards its overheads. Thi
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Bulk Agency Factoring : In this category factoring is essentially used as a method of financing book debts. In this sort of factoring the client continues to administer credit a
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 r
depreciation,depletion and amortisation
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A cash budget is one of the main important devices to plan and control cash payments and receipts. In preparation of a cash budget the subsequent points are considered. Cred
Product life cycle Every product has a life cycle. The life cycle of a product vary from months to various years. For example in the case of cameras photocopying machines etc.
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