Cost Reduction Homework Help
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A business is either subjected to profit or loss. Any investment done by the management always thrives among the market to optimize its productivity and approaches to achieve profits. But there are times when a certain condition does not support and market becomes too vicious. To undermine such situation a firm has to take initiatives in order to reduce costs and make adjustments in business. This term is known as cost reduction. It is rather a corrective function opted by the firm after analyzing the cost expended for further economic situations. Despite of seeing it as a downfall, students studying business studies are rather taught to take this initiative as a corrective measure. The point of view differs from student to student. And hence it is required to clear their doubts by practicing more amounts of small research and projects provided as homework. We deliver cost reduction homework help to students who thrive for in depth knowledge in this genre.
Characteristics of cost reduction
It is rather a superlative term in business and from our cost reduction homework helps the characteristics or objectives of cost reduction phenomenon become crystal clear for our clients. The following are certain characteristics compiled by our cost reduction homework help team
1. A cost reduction is supposed to be carried out in a permanent way. The reduction in prices of inputs such as materials, machinery and labor shows rather a temporary and short lived cost reduction technique. Research work can help a firm to obtain more optimized methods for productivity and reduce cost.
2. The quality or reliability of the product should never be compromised. It is not supposed to be affected by the cost reduction.
3. The greater productivity comes from the following positive and negative factors
a. Procuring higher quantities of production from similar facility
b. Using low quality material in the product, ultimately killing the product quality
c. Optimizing the manufacturing process
d. Changing product features by keeping quality as the utmost requirement
These factors are to be rendered quite necessarily to ensure that the cost reduction comes from genuine measures. In our cost reduction homework help we repeatedly advice that the cost of quality of any product should always be kept higher.
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Techniques of cost reduction
All the cost control techniques can be brought under the category of cost reduction techniques too.
• Budgetary control over the requirements like labor, machineries and transportations.
• Standard costing for a complete lot should be done and there should be a profit margin which is acceptable by the customers.
• Standardized products and tools are to be used and ultimately the quality of the product should never be compromised
• Simplification and variety reduction
• Improvement in design can be done. Optimized control over dimensions of the product can be done by the design aspect.
• Material, labor and overhead control.
• Automation can be opted but only for the mass production firms.
• Value analysis and cost benefit analysis kind of strategies are to be applied to ensure the cost reduction in positive direction.
• Job evaluation and merit rating
Advantages of cost reduction
a. It increases profit
b. Improvises labor-management relationship by contributing to labor welfare schemes
c. Availability of goods are cheaper rates to customers
d. Clashing with competitors becomes strategic and influential
e. From taxation even the government can benefit themselves
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