What is the importance of costs within a business organisation?

Question

I know it seems like a question so obviously answered! But i need all of the technical jargon for it to do some urgent coursework please!

Somebody help!

Answer 1

All the technical jargon in the world won't equate to making sure you are in profit.

Simply you want to make sure your are making more from your  business than it costs you to in expenses to keep your business going.

Profit is the only fancy word your are most likely to need with regards to a business.

Good luck with your course.

Answer 2

I think cost is THE MOST important topic to be addressed in all business organizations. This is because it will determine what profit level your organization is going to enjoy. Most above average and average ranking companies just don't look at cost in minute details, so that's the reason why they are not excellent. There 3 elements of waste (wastage) that you have to take into consideration when taking effort to reduce cost so as to get high profit.

Please visit  http://escentre.blogspot.com/2008/05/dou... for my brief presentation about reducing cost and turning it into profit

Answer 3

Lower the procurement price, higher the percentage of profit. It therefore is very much the most essential part of an organization to have prudent pricing of inputs and outputs for having a balance in profit percentage and customer satisfaction and retainment of old customers to fetch more for future.