Cost minimization

Author Topic: Cost minimization  (Read 4868 times)

Offline papelrezwan

  • Sr. Member
  • ****
  • Posts: 275
    • View Profile
cost minimization and wealth maximization
« Reply #15 on: November 11, 2010, 12:31:01 PM »
In the short run "cost minimization" and in the long run "wealth maximization".
Md. Rezwanur Rahman
MBA, BBA,
Student Counselor,
Daffodil International University
Executive Member, DIUAA
Cell: 01713493051, 01717352538
E-mail: rezwan@daffodilvarsity.edu.bd

Offline shibli

  • Faculty
  • Hero Member
  • *
  • Posts: 2768
  • God is only one without a second. [Upanisad 6:2]
    • View Profile
Re: Cost minimization
« Reply #16 on: November 12, 2010, 06:28:36 PM »
We see some people are overvalued in some organizations of Bangladesh....people should get the salary and other benefits what they actually deserve as per their skills and the outcome of their responsibilities. Thus cost can be minimized.
Those who worship the natural elements enter darkness (Air, Water, Fire, etc.). Those who worship sambhuti sink deeper in darkness. [Yajurveda 40:9]; Sambhuti means created things, for example table, chair, idol, etc.

Offline shibli

  • Faculty
  • Hero Member
  • *
  • Posts: 2768
  • God is only one without a second. [Upanisad 6:2]
    • View Profile
Re: Cost minimization
« Reply #17 on: November 13, 2010, 01:20:27 PM »
Finding out under-utilized employees and putting them in the right place with proper responsibilities can be one of the solutions of cost minimization.
Those who worship the natural elements enter darkness (Air, Water, Fire, etc.). Those who worship sambhuti sink deeper in darkness. [Yajurveda 40:9]; Sambhuti means created things, for example table, chair, idol, etc.

Offline Faiyaz

  • Full Member
  • ***
  • Posts: 187
  • "Man is least himself when he talks in his own person. Give him a mask and he will tell you the truth.." -Oscar Wilde
    • View Profile
Re: Cost minimization
« Reply #18 on: November 13, 2010, 08:16:29 PM »
Shibli Sir, I heard from my grandfather that after liberation war expert non-bengali workers were condemned and were sacked in order to give their places to bengali workers, who happened to be nothing more than novices... Here, I'm not advocating about bengalis or non-bengalis. But illustrating a fact that is, this type of cultural barrier is a prime reason for not utilizing the proper people to the proper places... And I do feel that, as cost minimization is subjected to generate more profit, we should bury these type of personal  prejudice for the greater sake of an organization.   
M. Faiyaz Naveed
Asst. Administrative Officer
Office of the Pro-Vice Chancellor
Daffodil International University

Offline rajib

  • Newbie
  • *
  • Posts: 14
    • View Profile
Re: Cost minimization
« Reply #19 on: November 15, 2010, 09:50:09 PM »
Sir,

We have many ways to do it. actually we have to think how we will increase our wealther rather than
redusing them. sometimes a very common thing happen is that we have always spent more than what
we have. so we must do our cost management effectively.

in addition as we are thinking wealth maximization, we must do it ligally and honestly that most people
do it illigally in bangladesh.
 

Offline Faiyaz

  • Full Member
  • ***
  • Posts: 187
  • "Man is least himself when he talks in his own person. Give him a mask and he will tell you the truth.." -Oscar Wilde
    • View Profile
Re: Cost minimization
« Reply #20 on: November 16, 2010, 05:04:32 PM »
Rajib, the thing is profit maximization. As I had discussed earlier, liquidity contradicts profitability. So if you wanna increase profit you need to reduce liquidity i.e. if you wanna get profit, then invest rather than having it as cash or something relevant to it. Other than that, in profit making 2 things should be considered. One thing is legal and other is ethical. If you see any cold drink org. they sell their products in 90-95% profit than their total cost. Now would you tell this illegal? Of course not! We are living under "lazies faire" policy. But it is unethical.
M. Faiyaz Naveed
Asst. Administrative Officer
Office of the Pro-Vice Chancellor
Daffodil International University

Offline rajib

  • Newbie
  • *
  • Posts: 14
    • View Profile
Re: Cost minimization
« Reply #21 on: November 17, 2010, 11:09:52 AM »
man,

I am talking about the black money or corrupted money

Offline sayeed

  • Newbie
  • *
  • Posts: 4
    • View Profile
Re: Cost minimization
« Reply #22 on: November 20, 2010, 10:13:18 PM »
It is a economic conceft. But it is nessary for every human. Today we expence more money for unnessary field. before careful for expence after posible cost minization.

Abu Sayed

101-11-1477

Offline shibli

  • Faculty
  • Hero Member
  • *
  • Posts: 2768
  • God is only one without a second. [Upanisad 6:2]
    • View Profile
Re: Cost minimization
« Reply #23 on: November 21, 2010, 03:12:19 PM »
@FAIYEZ
The objective of financial management is cost minimization and wealth maximization, not profit maximization. Thanks for your in-depth analysis though.
Those who worship the natural elements enter darkness (Air, Water, Fire, etc.). Those who worship sambhuti sink deeper in darkness. [Yajurveda 40:9]; Sambhuti means created things, for example table, chair, idol, etc.

Offline goodboy

  • Hero Member
  • *****
  • Posts: 1133
  • "Find your ways, Built your inspiration."
    • View Profile
Re: Cost minimization
« Reply #24 on: November 21, 2010, 07:28:22 PM »
 :)Thanks Mam.............

We should make our mind so ready & appropriate for apprehending the genre of cost minimization......... & should implement of it..........
Md. Abul Hossain Shajib.
101-11-1375
Department of BBA, Sec:B.
25th Batch.
Daffodil International University.
Email: shajib_1375@diu.edu.bd
Admin Executive
creative.bd

Offline Faiyaz

  • Full Member
  • ***
  • Posts: 187
  • "Man is least himself when he talks in his own person. Give him a mask and he will tell you the truth.." -Oscar Wilde
    • View Profile
Re: Cost minimization
« Reply #25 on: November 22, 2010, 02:05:27 PM »
Shibli Sir, I emphasized on profit maxization for one purpose only. And that is, if you want to increase your organization's profit, you need to balance it with an organization's liquidity. For example- If you invest money on share market, you are likely to lose it as it's uncertain (or you are investing on short term basis). But if you invest it on your business your risk may get big but your return may get bigger that you never know.     
M. Faiyaz Naveed
Asst. Administrative Officer
Office of the Pro-Vice Chancellor
Daffodil International University

Offline nature

  • Hero Member
  • *****
  • Posts: 912
  • I love my University
    • View Profile
Re: Cost minimization
« Reply #26 on: November 24, 2010, 09:51:12 PM »
Dear Sir, Wealth Maximization is the objective of any financial managment.
Name: Md. Faruque Hossain
ID: 142-14-1436
Department of MBA
Daffodil International  University
Email:faruque_1362@diu.edu.bd

Offline Yousuf.Chy

  • Full Member
  • ***
  • Posts: 242
    • View Profile
Re: Cost minimization
« Reply #27 on: November 25, 2010, 03:22:51 PM »
Wealth maximization can be done by maximizing the price of shares.

Cost Minimization can be done by increasing production efficiencies.
Yousuf Chowdhury
Student Counselor,
Daffodil International University
Member, DIUAA
Cell: +880 01713493051.
E-mail: yousuf.chy@daffodilvarsity.edu.bd

Offline goodboy

  • Hero Member
  • *****
  • Posts: 1133
  • "Find your ways, Built your inspiration."
    • View Profile
Re: Cost minimization
« Reply #28 on: November 25, 2010, 09:42:16 PM »
By investing the idle resources,minimize company contradiction.& procure more benefits can be helpful to maximize wealth.............. 
Md. Abul Hossain Shajib.
101-11-1375
Department of BBA, Sec:B.
25th Batch.
Daffodil International University.
Email: shajib_1375@diu.edu.bd
Admin Executive
creative.bd

Offline Faiyaz

  • Full Member
  • ***
  • Posts: 187
  • "Man is least himself when he talks in his own person. Give him a mask and he will tell you the truth.." -Oscar Wilde
    • View Profile
Re: Cost minimization
« Reply #29 on: November 27, 2010, 10:58:23 PM »
Although the topic is going far beyond it all started, I think I need to describe my point.
We all know that, we invest in different projects to increase our assets. And we supply money on business, thus it becomes capital to generate profit. Thats why, capital and profit are both seen as owners equity. For example- a person has 50,000 and he has 2 options. 1. He could invest it on share market and 2. He could capitalize it on his business. He takes the first option. And ironically, the share goes to OTC market over a time period. Now, this guy could only pity himself, thinking that he should have invested the bucks on his business since he can monitor the activities and thus his 50 thousand could bring him profitability at short time. So, in this case I think that, profit>wealth...   
M. Faiyaz Naveed
Asst. Administrative Officer
Office of the Pro-Vice Chancellor
Daffodil International University