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The cost breakdown analysis is a popular cost reduction strategy and a viable opportunity for businesses. [1][2][3] The price of a product or service is defined as cost plus profit, whereas cost can be broken down further into direct cost and indirect cost. [1] As a business has virtually no influence on indirect cost, a cost reduction oriented ...
A work-breakdown structure (WBS) [2] in project management and systems engineering is a deliverable -oriented breakdown of a project into smaller components. A work breakdown structure is a key project management element that organizes the team's work into manageable sections. The Project Management Body of Knowledge defines the work-breakdown ...
Cost engineering is "the engineering practice devoted to the management of project cost, involving such activities as estimating, cost control, cost forecasting, investment appraisal and risk analysis". [1] ". Cost Engineers budget, plan and monitor investment projects. They seek the optimum balance between cost, quality and time requirements."
The Chartered Institute of Management Accountants defines a cost driver as: [A] cost driver is any factor which causes a change in the cost of an activity. [citation needed] However, a different meaning is assigned to the term by the business writer Michael Porter: "cost drivers are the structural determinants of the cost of an activity ...
Cost–utility analysis (CUA) is a form of economic analysis used to guide procurement decisions. The most common and well-known application of this analysis is in pharmacoeconomics , especially health technology assessment (HTA).
In economics, a transaction cost is a cost incurred when making an economic trade when participating in a market. [ 1 ] The idea that transactions form the basis of economic thinking was introduced by the institutional economist John R. Commons in 1931.
In business strategy, cost leadership is establishing a competitive advantage by having the lowest cost of operation in the industry. [1] Cost leadership is often driven by company efficiency, size, scale, scope and cumulative experience (learning curve). A cost leadership strategy aims to exploit scale of production, well-defined scope and ...
Cost–benefit analysis (CBA), sometimes also called benefit–cost analysis, is a systematic approach to estimating the strengths and weaknesses of alternatives.It is used to determine options which provide the best approach to achieving benefits while preserving savings in, for example, transactions, activities, and functional business requirements. [1]