Introduction to Cost Reduction Techniques
The following are some significant cost reduction techniques:
(i) Budgetary Control;
(ii) Standard Costing;
(iii) Inventory Control;
(iv) Job Study, Works Study and Motion Study;
(v) Job Evaluation and Merit Rating;
(vi) Value Analysis.
(vii) Reduction in variety of products
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Production planning can also very much assist in cost reduction. The location and lay-out of the factory have important affect on cost.
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