Question

Provide an example or a scenario for practical, creative, and/or effective ways to minimize production costs in order to maximize profits.

Answer 1

The business is successful when it's know the different ways to minimise the production cost and ultimately the profit get maximized. The businesses are only done to maximise its profits. The profit can be increased by these methods like by increasing the selling prices and by reducing production cost and most of the companies go for the second method of reducing production cost because it is in the hand of production departments by tracking the proper record it can done very effectively.

I will take example of a manufacturing sectors where there are different techniques to reduce to manufacturing cost and this sector is the important sector and center of all sectors of the economy :

.By keeping all the records of expenses in production process like direct materials costs, direct labour cost, manufacturing overheads, carrying cost of inventory cost of good sold, the extra any expenses can be reduced if we keeping the proper record of this cost.

Train the employees.