Cost drivers for determining cost of the company
What are the cost drivers for company’s cost found?
Expert
Controlling the Cost Drivers: here, nine main cost drivers which come into play in getting a company’s costs in each activity part of value chain as follows:
I. Diseconomies or Economies of scale, the costs of a particular value chain activity are often topic to diseconomies or economies of scale.
II. Learning and experience curve effects the cost of executing an activity can refuse over time as the experience of company personnel builds.
III. The cost of main resource inputs, the cost of executing value chain activities depends in fraction on what a firm has to pay for main resource inputs.
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