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Cost Savings
Cost savings in business refers to the amount of money gained by reducing or eliminating an expense, which can range from things such as labor, supplies, and materials. Saving money on operating expenses can help a business grow and thrive by maintaining profitability levels over time.
What Small and Midsize Businesses Need to Know About Cost Savings
Cost savings are essential when running a small business as they allow you to remain competitive against other companies that may be offering similar goods at higher prices. Some businesses use this strategy to reduce their production time by automating processes previously done manually, such as inventory control systems with robots instead of people. Businesses may also outsource some of their functions to third-party companies who can do it cheaper.
Related terms
- Tokenization
- ROIT (Return on Information Technology)
- SAC (Subscriber Acquisition Cost)
- Energy Trading and Risk Management (ETRM)
- Chief Revenue Officer (CRO)
- Core Banking System
- Record to Report (R2R)
- Fintech
- Financial Management System (FMS)
- Business Capability Modeling
- Capital Allocation
- Compound Annual Growth Rate (CAGR)
- Net Present Value
- Hedge Fund
- Gateway
- Selling General and Administrative (SG&A) Expenses
- ROE (Return on Equity)
- Financial Planning and Analysis (FP&A)
- Dollar-Cost Averaging (DCA)
- Procure-to-pay Solution
