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The costs for firms operating on a global scale have been drastically reduced by what?
Wiki User
∙ 13y ago
The costs for firms operating on a global scale have been drastically reduced by advances in technology, specifically in communication and transportation. These advancements have allowed businesses to streamline their operations, outsource tasks, and reach a wider customer base more easily and efficiently.
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Are companies starting to use global sourcing as a way to cut costs?
Yes, many companies are turning to global sourcing as a cost-saving strategy. By sourcing materials or products from countries with lower labor or production costs, companies can reduce their expenses and increase their competitiveness in the market. However, it is important for companies to consider factors like quality control, transportation costs, and ethical considerations when implementing global sourcing strategies.
Explain why operating leverage decrease as a company increase sales and shifts away from the BEP?
As sales increase, a company's fixed costs remain the same, causing the contribution margin ratio to improve and operating leverage to decrease. This is because a higher proportion of each additional sales dollar goes toward covering fixed costs rather than variable costs. Operating leverage is highest at the breakeven point where fixed costs are fully covered.
What has lower global costs of labor have caused?
Lower global costs of labor have caused companies to outsource production to countries with cheaper wages, resulting in job loss and income inequality in higher-cost countries. This has also put pressure on workers in developing countries to accept lower wages and poorer working conditions.
Advantages and disadvantages of natural gas and electric vehicles over diesel vehicles?
Natural gas and electric vehicles have lower greenhouse gas emissions and reduced air pollution compared to diesel vehicles. They also tend to have lower operating costs due to cheaper fuel and maintenance. However, natural gas vehicles may have limited infrastructure for refueling, while electric vehicles may have limitations in range and charging infrastructure. Diesel vehicles have higher emissions and operating costs but generally have a longer driving range.
Why is the process not operated at even higher pressures?
Operating at even higher pressures can increase the risk of equipment failure, increase operating costs, and require additional safety measures. Additionally, operating at very high pressures may not significantly improve the process efficiency beyond a certain point, making it unnecessary to operate at even higher pressures.
Are variable costs included in operating costs?
Variable operating costs + fixed operating costs = total operating costs.
How do you reduce in staffing costs?
Staffing costs can be reduced by ... letting go more highly paid staff ... shortening opening/operating times ... reducing wages ... cutting staff numbers ... taking on interns on "work experience"
What is the non crash cost of driving?
The noncrash costs of driving include operating costs, fixed costs, and environmental costs. Operating costs include: gas, oil, and tires. The more you drive, the greater your operating costs. Fixed costs include: the purchas price of the vehicle, insurance, and licensing fees.
What are the advantages and disadvantages of field service software?
"Some of the advantages of field service software are a drastically reduced amount of paperwork (which means more productivity), some automation, and easy access to data. A disadvantage could be high costs."
The importance of start up costs and operating costs?
nothing
What are Some sentence for operating costs?
Operating costs must be taken into account when a company's balance sheet is being produced.
Profit is calculated by subtracting costs from?
Profit is calculated by subtracting operating costs from gross revenues.
When a business is calculating its operating costs what must it include?
Variable costs.
When a business is calculating its operating costs it must include .?
Variable costs.
What are the advantages of outsourcing?
Reduced labor costs.
Which of these defines the term "expenses"?
the costs of operating
What are costs that a company has to pay whether or not its operating?
The Company has to pay its Fixed Costs, Such as Rent and utility. These cost have to be paid regardless of whether the company is operating or not
