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Business book. The ultimate
resource. Controlling
costs. Raw materials
into finished goods. Cost control
can supply essential management information. Cost control
highlights inefficient practices. Cost data can
provide a basis for pricing structure. 1. Collect data on your costs. 2.
Communicate cost awareness. 3.
Investigate methods of cost allocation. The budget is
the most powerful instrument of cost control you have. From scratch
equals zero based budgeting. 4.
Identifying your cost elements. 5. Analyze
variable costs. Look for
trends, healthy or unhealthy? 6. Monitor
your cost and expenses regularly.
Cost of goods sold as a percentage of net sales. 7. Understand
the relationship between cost control and profitability. 8. Remember
quality. Do you know
the full cost or workflow processes in your organization. Look for
interrelated hidden costs. Do you
involve staff in problem solving. Reexamine,
remember, understand, recognize, published financial targets regularly,
circulate key statistics to managers. |
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