Return to Financial outcomes

Costs – C

  • Managers at all levels must try to ensure their total costs are minimised and, if they increase, they at least grow at a slower rate than revenue

  • To do this, they must break down the costs of all input resources, especially those which are significant and controllable

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  • N.B.1  There’s no point fussing over one which costs 0.002% of the total when another costs 17% and is over budget

  • N.B.2  Beware arbitrary allocation of fixed costs, like overheads, between different products or departments – they can unfairly penalise some versus others

 

 

 

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