Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins

Exercise 8

Explain what not relevant cost means and provide two examples of it.

Step 1 of 2

Managing the finances of the organization requires skill and sound knowledge. The costs that are not mandatory should be eliminated. Cost effectiveness is achieved when the requirements of the firm are satisfied at a lower cost without compromising on the quality standards.