<!--Begin: Star-Clicks.com HTML Code--><script type='text/javascript' src='https://www.star-clicks.com/secure/ads.php?pid=90720332851816451'></script><!-- End: Star-Clicks.com -->Cost Control
in Business is,
To be
profitable; companies must not only earn revenues, but also control costs. If
costs are too high, profit margins will be too low, making it difficult for a
company to succeed against its competitors. In the case of a public company, if
costs are too high, the company's may find that its share price is depressed
and that it is difficult to attract investors. Cost controls starts by the
businesses identifying what their costs are and evaluate whether those costs
are reasonable and affordable. Then, if necessary, they can look for ways to
cut costs through methods such as cutting back, moving to a less expensive plan
or changing service providers. The cost-control process seeks to manage
expenses ranging from phone, internet and utility bills to employee payroll and
outside professional services.
What is a
cost structure?
The expenses that a firm must take into account when manufacturing a product or providing a service. Types of cost structures include transaction costs, sunk costs, marginal costs and fixed costs. The cost structure of the firm is
the ratio of fixed costs to variable costs.
Comments
Post a Comment