Running Head: REDUCING COST
[Name of Customer]
[Name of Institute]
Ways to reduce Cost
In the unpredictable economic times prevalent contemporarily, organizations and economies all over the world are devising strategies that can prove effective in providing them sanctuary from the looming threat of increasing expenditures. However, there are a number of ways through which these expenses can be controlled in an intelligent and less intimidating way. First and foremost, a careful analysis of the sectors where your budget goes wild is significant in taming the money animal. Sometimes it is difficult to reduce an increase item, but more profits can be generated from the increased item if the expense analysis is conducted in a careful way. It is therefore important during analysis that one must make use of percentages rather than actual dollar amounts. For instance if your main objective is to surge sales it is important that the dollar expense is kept the same, by implementing this method you have actually decreased the expense of sale as a percentage which will eventually manifest itself in the form of increased profits. Similarly if the sales volume of an item remains constant, the percentage of profit can still be increased by reducing a particular component contributing to expense. Through such a policy you will be able to successfully achieve both objectives: to decrease the alarming expense and increase the productivity at the same time. Another tool that can effectively be utilized when discussing ways to reduce costs and expenses is ingeniously prioritize the expenditures that are mandatory and those that can temporarily be sidelined. The prioritization is also important as it allows organizations to make decisions accordingly in order to frame their objectives towards acquiring goals that they feel are important for the prosperity of the organization rather than focusing entirely on places which...
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