Search results
Results From The WOW.Com Content Network
Sunk cost. In economics and business decision-making, a sunk cost (also known as retrospective cost) is a cost that has already been incurred and cannot be recovered. [ 1][ 2] Sunk costs are contrasted with prospective costs, which are future costs that may be avoided if action is taken. [ 3] In other words, a sunk cost is a sum paid in the ...
Cost reduction is the process used by organisations aiming to reduce their costs and increase their profits, or to accommodate reduced income. Depending on a company’s services or products, the strategies can vary. Every decision in the product development process affects cost: design is typically considered to account for 70–80% of the ...
Value engineering ( VE) is a systematic analysis of the functions of various components and materials to lower the cost of goods, products and services with a tolerable loss of performance or functionality. Value, as defined, is the ratio of function to cost. Value can therefore be manipulated by either improving the function or reducing the cost.
A synonym seen in many contexts is minimum attractive rate of return. The hurdle rate is frequently used as a synonym of cutoff rate, benchmark and cost of capital . It is used to conduct preliminary analysis of proposed projects and generally increases with increased risk.
Harris "knows costs are too high and will make tackling inflation a 'Day One' priority," added the official who declined to be identified speaking about the event beforehand.
Layoff. A layoff[ 1] or downsizing is the temporary suspension or permanent termination of employment of an employee or, more commonly, a group of employees (collective layoff) [ 2] for business reasons, such as personnel management or downsizing (reducing the size of) an organization. Originally, layoff referred exclusively to a temporary ...
Predatory pricing is a commercial pricing strategy which involves the use of large scale undercutting to eliminate competition. This is where an industry dominant firm with sizable market power will deliberately reduce the prices of a product or service to loss-making levels to attract all consumers and create a monopoly. [ 1]
A Allocation of costs is the transfer of costs from one cost item to one or more other cost items. Allowance - a value in an estimate to cover the cost of known but not yet fully defined work. As-sold estimate - the estimate which matches the agreed items and price for the project scope. B Basis of estimate (BOE) - a document which describes the scope basis, pricing basis, methods ...