What are the difficulties in cost reduction, Managerial Accounting

Assignment Help:

Difficulties in cost reduction

1) Resistance by employees to pressure to reduce cost usually because the nature and purpose of the campaign has not been properly explained to them and they feel threatened by the change

2) They may be confined to a small area the business 9e.g to one department) with the result that cost are reduced in one cost centre only to reappear as an extra cost in another cost centre;

3) Efforts to cut material and labor cost may erode confidence in established system for estimating material usage and labor productivity standards;

4) Cost reduction campaigns are often introduced as a rushed desperate measure instead of a carefully organized exercise.

 


Related Discussions:- What are the difficulties in cost reduction

College accounting contemporary approach, question 3.5A Trial balance shee...

question 3.5A Trial balance sheet,income statement, owner''s equity and balance sheet

What is replacement cost, Replacement cost It is the cost of replacing ...

Replacement cost It is the cost of replacing a material or asset, by purchase from the current market. If an X material was originally purchased @ Rs. 250 per Kg. And know i

How would you characterize the politics of food, Given the persistent probl...

Given the persistent problem with starvation in some parts of the world, and the anticipated population growth in developing nations, do we need genetically modified foods? Is it r

Cindy, School problem is asking to calculate the work in progress inventory...

School problem is asking to calculate the work in progress inventory for the beginning of a month without providing previous month data.

Permanent abandonment of premises, PERMANENT ABANDONMENT OF PREMISES A ...

PERMANENT ABANDONMENT OF PREMISES A company may find it more profitable to concentrate its output in some factories by closing down others.  The decision, in this instance, is

Working capital, State Factors determining Working Capital requirement.

State Factors determining Working Capital requirement.

What are the classification and computation of variances, Classification an...

Classification and computation of variances The computation and analysis of variances is the main aim of standard costing. The variance is the difference among the standard pe

Accepting or rejecting the offer, given a scenario when iddle capacity is l...

given a scenario when iddle capacity is less than the special order.in this case should we accept or reject the order

Marginal costing technique, how company apply marginal costing techniques s...

how company apply marginal costing techniques show with an example

CH 7, Hickory Company manufactures two products—14,000 units of Product Y a...

Hickory Company manufactures two products—14,000 units of Product Y and 6,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is cons

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd