Question

Which of the following is a good approach to cost reduction? Outsourcing of those activities found to be too expensive to vendors with the lowest bids A systemic analysis of costs followed by targeted improvements Elimination of overtime Across-the-board expense reductions

Answer 1

ANSWER :

1. Out sourcing those activities found to be expensive to vender with the lowest bids :

isn't right offering offers to party outside with lower cost will prompt disintegration of administrations as it can likewise harm other basic administrations quality.

2. A systemic analysis of costs followed by targeted improvement :

As a systematic analysis of cost and considering the measure in the wake of taking the cost examination for various things will diminish cost as it will decrease wastefulness without trading off the quality. so it is the correct methodology for cost decrease.

3. Elimination of over time :

isn't right as the disposal of over time will nor diminish cost as it relies on the need of the association.

4. Across the board expenses reduction :

The board expenses reduction isn't the most ideal alternative as it will diminish a few administrations structure the board which will influence the board.

Hence the correct choice given is across the board expenses reduction.

Hence the good approach to cost reduction is

"across the board expenses reduction ".

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