Cost means expenses incurred. For providing any goods or service costs are incurred for manufacturing the product right up to selling them in the markets and in rendering services also costs are incurred. Cost Accountancy apart from defining various types of costs and their computations also states the theory of cost reduction.
There are basically two main reasons for cost reduction. Firstly it eliminates wasteful expenses and secondly it maximizes returns. Cost reduction is basically the reduction of per unit cost. This can be achieved by optimal utilization of resources. When per unit cost reduces then automatically the returns increases. Thus cost reduction aims at increasing profits.
Cost can be reduced by using cheaper alternative raw materials, planning proper and cheap warehousing facilities, configuring logistics by minimizing its costs, etc.
At Assignment Hut we will provide students with ample cost reduction techniques so that their concept is clear and they understand the subject properly. As an extending hand to help in assignments and home-works for students, the problems will be solved in a user friendly mode so that the students do not face any difficulty to understand the matter.
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