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Cost minimization

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shibli:
Can we discuss on cost minimization and wealth maximization which is one of the objectives of Financial Management? For an organization to grow and sustain in the long run, how important is cost minimization? 

shibli:
One way to minimize the cost is to put the right people in the right place, to cut down unnecessary expenses, to utilize human resources properly, and NOT to reward and give financial and other benefits to those who don't deserve.....A good human resource manager knows whom to give what......

over to all to BBA students  who have studied Human Resources Management and Finance....  

goodboy:
Thanks mr. shibli sir for posting such a core concept of financial management.......................................

Md. Limon Hossain:

We should be make portfolio to long run of our business. We have to invest our money in different sectors. If we fall in loss in any sector then other can help us to recover that loss. For example, you have 1,000,000 taka and you invest 200,000 in capital market, 200,000 in pharmaceuticals and remaining in Garments sector.

If Garments fall in loss then capital market and pharmaceuticals can help you to recover your loss. If you don’t make this portfolio then you may have to close your business.

sajib:
The process or goal of incurring the least possible opportunity cost in the pursuit of a given activity. Cost minimization is comparable to other objectives, including utility maximization and profit maximization. This goal, however, is generally used when circumstances constrain a decision. For example, a government agency has been assigned the task of building a bridge. It must now do so at the lowest cost possible.

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