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Characteristics of cost reduction
1) Cost reduction must be real : said through increase in productivity change in product design improvement in technology etc.
2) Cost reduction must be permanent : temporary reduction in cost due windfalls change in tax rate changes in market prices etc do not come in the purview of cost reduction.
3) Cost reduction must not impair : the suitability of products or services for the intended use. In other words cost reduction should not be at the cost essential characteristics of the products or service.
Transfer Pricing Transfer pricing can contribute directly to the process of departmental performance measurement and indirectly to the measurement of product performance. A
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Advantages and Disadvantages
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