Question

Can you give me a list of some ideas on how I can cut costs in order to try and stay within a budget?

I need a 175 word count please.

Thank you very much for your time and effort.

Answer 1

Budget is prepared to make a plan outline so that a profit is achieved after considering all the necessary costs. Budget is prepared on the basis of past performance of the entity ann certain future predictions are made about various costs and incomes.

So, now there can be certain ways in which costs can be reduced to stay within the budget. But for these cost reductions also required is that the production level may increase or decrease.

The following are the ways in which costs can be reduced :

• One of the best way to reduce costs is to use less labour than usual.
• Use of automation in business and management will lower much costs.
• Doing online business as compared to traditional business.
• Employee labour on hour basis will reduce fixed costs.
• Using good internal controls can be helpful in reducing costs.
• Proper accounting will also be helpful.

Budgeted costs are to the exact costs, these are just assumptions for the future business.
So, not really the budgeted costs would occur, these may be increased or decreased.

But using the above mentioned points certain business costs can be reduced.