The ultimate resource.
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.