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Tuesday, May 29, 2018

3 Surefire Strategy of Cost Reduction or Cost Reduction is Most Effective

The strategy of Cost Reduction is the term cost reductions that can be applied by companies as a step of lowering the budget in accordance with the policy of each company.

The determination of the allocation of the budget in a company have a purpose and intent that in fact not only for the sake of convenience the company solely in the interest of investors but also.

Hence the importance of the creation of this budget will be closely related to the stage of cost reduction or cost-reduction measures in the company.

Step step application of cost reduction or cost reduction strategies

There are three aspects that must be considered in the exercise of the company's cost reduction efforts such as:

#1 Do decrease the cost of production

The capital is the main needs in the keiatan production and this should be sufficient until the angaran at this stage of development to the growth of the company seoptimal as possible.

Whatever the reason when the company is running cost reduction then it's been absolute cost of production included therein.

#2 Do decrease the number of products

The next point is reducing the number of products that will be marketed so that cost reduction measures will be more effective and easily reached.

This is indeed a very closely related to a decrease in production costs which is to keep the quality of the products it will be better if the number of products is also reduced in accordance with the availability of the production costs.

#3 Did a drop in the value of investment

Investment savings business is run by a company that aims to maximize existing financial within the company.

So that in carrying out the strategy of cost reduction is usually the number of investments made by the company should be reduced in number due to the pemaksimalan of funds used to run the production process.

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