Cost Control - the result of selling other products, total...

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Cost Control: I think that one of the things to help businesses better control their costs is monitoring. By identifying and controlling their costs, entrepreneurs are better able to earn a profit and be successful. “Entrepreneurs often try to increase their sales to reduce the amount of fixed costs paid per item sold. This explains why many gas stations have become convenience stores in recent years. If the owner has to pay to have a building and someone there to help customers, it doesn't cost much more to sell milk and bread, too. As
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Unformatted text preview: the result of selling other products, total sales increase. This reduces the amount of fixed costs that must be paid out of each dollar of sales, thus increasing profit. (Online Source). Businesses use cost control methods to monitor, evaluate, and ultimately enhance the efficiency of specific areas, such as departments, divisions, or product lines, within their operations. Reference: http://ecedweb.unomaha.edu/lessons/euse1.htm...
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This note was uploaded on 07/22/2011 for the course ECON 312 taught by Professor Thritle during the Spring '10 term at DeVry Chicago.

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