cost-reduction

Vocabulary Word

Definition

Cost reduction involves steps taken to lessen expenses or costs in a business or project. It's like finding ways to use less electricity in your office, which reduces your electricity bill.

Examples in Different Contexts

In financial management, a CFO might focus on 'cost-reduction' strategies. 'Our goal is to achieve cost-reduction through streamlined operations and renegotiated vendor contracts,' the CFO might explain.

Practice Scenarios

Operations

Scenario:

Our production costs are quite high. We need to figure out how to make our processes more efficient.

Response:

A focus on reducing machine downtime is a good cost reduction tactic that could help us save money.

Business

Scenario:

Our company's spending is getting a little out of hand. We need to bring it back under control.

Response:

I agree, we need to implement a cost reduction plan to align our expenses with our budget.