ACCA SBL Syllabus C. Strategy - Effective cost management and control systems - Notes ^{2 / 6}

Cost Efficiency

The level of resources needed to create value

Costs can be lowered by:

1. Economies of scale

2. Economies of scope (producing more products with the same materials)

3. Process design

4. Experience

Organisations should expect real costs per unit to decline over time - thus they must attempt to continue to produce value for money