Complete 2 page APA formatted essay: Unit II Cost Management.In the worst case, we can reduce the secretary to 1 instead of 2.In cost cuts, those costs should be identified and controlled which have l

Complete 2 page APA formatted essay: Unit II Cost Management.

In the worst case, we can reduce the secretary to 1 instead of 2.

In cost cuts, those costs should be identified and controlled which have least impact on the main (core) operations of the company. In the given case, the administrative costs are overhead and provide no significant value to the business. Hence, these should be the priorities when cutting costs. The salaries of social workers etc., if reduced will have a negative impact on the quality care of the company.

If too many expenses are allocated to a business, that will have a negative impact on the profitability of the business as profit = revenue – expenses. Hence, an increase in expense will reduce the