Friday, January 22, 2010

What is meant by cost control and cost reduction?

cost control is timing expenditures to maintain cash flow and cost reduction in increasing earnings by reducing cost. Example, postponing the purchase of inventory for a week and working off existing inventory until customer payment can keep positive cash flow which means a business doesn't need to barrow on its line -that is cost control. Increasing efficiency by automating processes and reducing labor is cost reduction.What is meant by cost control and cost reduction?
usually layoffs

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