Cost Drivers

Cost Drivers

The concept of cost drivers can be defined in the consumption or expenditure of recourse or the limitations incurred on revenues. They include:

i.            Price

  • Amount actually paid
  • Price protection

ii.            System & Processes:

  • Time
  • Overhead

iii.            Inventory

  • Carrying costs
  • Overstock & dead stock
  • Handling costs

iv.            Requirements

  • Over-engineered
  • Under-engineered

       v.            Operations

  • Maintenance costs
  • Operating efficiency

     vi.            Revenues

  • Downtime
  • Improved output

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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1 Comment (+add yours?)

  1. ISO 9000
    Sep 28, 2011 @ 05:15:53

    I appreciate your post. I also wrote that SMS advertising provides a cost effective method of targeting promotions to specific customer profiles. You might want to remind customers of specific events or promotions, but for whatever reasons, SMS allows you to pass information directly to the right customer at very affordable prices and fast delivery.
    iso 9000

    Reply

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