Chapter 6

Managing Costs

That night, she made just enough filling for 10 pies—not a morsel could she waste; but, by sunrise, to her surprise, no pies: an empty bowl followed her last taste.

—© 2013 Sage Sayings™

Introduction to Understanding Costs and Cost Control Strategies

Although the overriding purpose of any business is to make a profit, no business does so without incurring some costs. The challenge is to minimize those costs so that your profit can be maximized. Properly using resources to accomplish your business’s objectives is dependent upon an appreciation of cost and its various forms. Thus, knowing how much goods and services cost is vital to the long-range strategy of a successful business—and, perhaps, especially any small business. ...

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