Response to the cost of production
I also agree with you that the best way to reduce the cost is by cutting . The cost of production has big command on the market as it dictates the final product price, the salaries paid to the employee, the budget allocated to other activities and many other financial activities (Shepherd, 2015). It is therefore critical to ensure that the cost of production is kept as low as possible to ensure that the final price of a product I also reduced for the advantage of the customers in price dictation. If the organization can be in a position to cut the cost of production, maintain quality and also increase its effectiveness and efficiency in production, it goes a long way in making sure that the price of their products is affordable to the customers (Croce, 2014). The concept gives the company a competitive edge in the market. Your analysis is detailed and therefore making your discussion post to be of substantial help to the weekly discussion as it has great information on the material price variance, and the material quantity variance our analysis
Shepherd, R. W. (2015). Theory of cost and production functions. Princeton University Press.
Croce, M. M. (2014). Long-run productivity risk: A new hope for production-based asset pricing?. Journal of Monetary Economics, 66, 13-31.