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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
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To do this, they must break down the costs of all input resources, especially those which are significant and controllable
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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
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N.B.2 Beware arbitrary allocation of fixed costs, like overheads, between different products or departments – they can unfairly penalise some versus others