Expense minimisation

• Overall


  The process of reducing expenditures on unnecessary or inefficient processes

  Profits can be weakened if the expenses of a business are high, as they consume valuable resources within a business

  Guidelines and policies should be established to encourage staff to minimise expenses where possible

  Savings can be substantial if people take a critical look at costs and eliminate waste and unnecessary spending
• Strategies


  Balancing cost savings and quality can be difficult, so managers must determine which area or areas and which activities to focus on

  Many businesses will aim to reduce costs and pass these savings on to customers without significantly impacting on the overall value of the product to consumers

  Profits are impacted due to high costs

  Guidelines and policies should be established to encourage staff to minimise expenses where possible

  Savings can be substantial if people look at costs and eliminate waste and unnecessary spending