So what exactly is Cost

So what exactly is Cost - So what exactly is Cost Well it...

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So what exactly is Cost? Well it can be stated that it is simply how much it costs to make a product. In that cost, there are explicit and implicit aspects – explicit being monetary cost and implicit being costs that are opportunity (or cost within). So in essence – cost can be defined as: I ( Implicit ) +E ( Explicit) = C ( Cost )( ). Companies every day look at these numbers in order to find a reasonable price to sell their good(s) at and still make a profit. However, all companies will look for ways to keep their cost down and their profits high. Such examples might be moving factories to Mexico – where labor costs are much lower than in the United States. Or some might shut down plants or even lay off workers to try to save on costs. Toyota is in the hot seat right now with their car recalls, and in essence under some scrutiny that their cost cutting ideals ultimately lead them to their own demise. However, even with this negativity – they have always been one of the front runners with cost minimization. Back in 2000, it was reported that Toyota was going to “ slash costs 30% across the board for the car parts it buys -- from air-conditioning ducts and door-
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So what exactly is Cost - So what exactly is Cost Well it...

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