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Yes, absolutely. Only when you understand your costs, can you begin to make both cost and efficiency savings. This is one of the basic principles of lean manufacturing through process improvement. If you map the process, analyse the costs, then you can strip waste from the process/ costs and generate extra bottom line revenue whilst remaining at your most competitive state.
Yes, by investigating the costs and eliminate the unnessesary activities and costing and by closing the nonprofitable segments
Yes it does, in general financial analysis help managers to improve the work performance & increase the profits and cost analysis is part of it.
Agree..Every Financial Activities are Important..
There are lots of costs out there. You must be able to balance the matter between reliability, safety, quality and costs. Most CPAs focused only on costs thats how they do it basically from accounting ledgers. But isnt it there are costs that are beneficial to operations and as part of your risk assessment maybe you can include probabilistic models versus actual to gage your key performance indicators for Operational Exellence.