Cost_cutting
Cost reduction
Process used by organisations to reduce costs
Cost reduction is the process used by organisations aiming to reduce their costs and increase their profits, or to accommodate reduced income. Depending on a company’s services or products, the strategies can vary. Every decision in the product development process affects cost: design is typically considered to account for 70–80% of the final cost of a project such as an engineering project[1] or the construction of a building.[2] In the public sector, cost reduction programs can be used where income is reduced or to reduce debt levels.[3]
This article includes a list of general references, but it lacks sufficient corresponding inline citations. (November 2011) |