Cost Avoidance , Cost Prevention & Cost Saving

June 12, 2016 admin 8 comments

As I’ve written before, we need to identify three types of cost management. Cost Avoidance – Avoiding Costs, Cost Prevention – Prevents Cost and Cost Saving – Saves costs. The example below is how wittingly electricity consumption rate per hour, we can use the second way that is Cost Prevention. Cost Prevention t is on planning that is neat. Now there is a equipment to control the flow of electricity rates that goes into your home.This equipment provides Cost Saving.Cost Avoidance can not be made in electricity using this example because the unit price of electricity set by TNB in Malaysia and we cannot compromise. However, the installation of solar energy is an example Cost Avoidance.You can use these 3 types of costs for other goods in the management of your business so that it can help alleviate the lack of profit as a result of the decline in sales of goods.powersaver

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