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Controlling Operational Costs

.This essay focuses on Controlling Operational Costs. Cost control is the practice of identifying and reducing business expenses to increase profits, and it starts with the budgeting process. A business owner compares the company’s actual financial results with the budgeted expectations, and if actual costs are higher than planned, management has the information it needs to take action.

Controlling Operational Costs

ulia is reveiwing a list of expenses for the operation of her establishment. Shje notices several jumps in costs compared to the previous month.

These are the items that have increaded in costs:

1. Electricity

2. Labor

3. Produce delivery fees

4. Milk Given this inforamion

asnwer the following questions:

1Firstly, What can Julia do to reduce each these costs in the upcoming months?

2.Secondly,  How might these changes affect the customers?

3.Thirdly,  Are there any costs that Julia cannot reduce and why?

4.In addition,  Which of the costs are semi-variable and how can Julia control the variable portion of those costs?

5. What can Julia do to increase profits even if she is not able to cut costs?

When executing your responses, you must include the following:

1. complete sentences to each of the questions

2. minumum of 3 current references used

3. work sited page included with the submission

Cost control is the practice of identifying and reducing business expenses to increase profits, and it starts with the budgeting process. A business owner compares the company’s actual financial results with the budgeted expectations, and if actual costs are higher than planned, management has the information it needs to take action.

As an example, a company can obtain bids from different vendors that provide the same product or service, which can lower costs. Cost control is an important factor in maintaining and growing profitability.

Corporate payroll, for example, is often outsourced, because payroll tax laws change constantly, and employee turnover requires frequent changes to payroll records. A payroll company can calculate the net pay and tax withholdings for each worker, which saves the employer time and expense

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