Difference between revisions of "Cost leadership"
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According to [[Cost Accounting by Horngren, Datar, Rajan (14th edition)]], | According to [[Cost Accounting by Horngren, Datar, Rajan (14th edition)]], | ||
:[[Cost leadership]]. Organization's ability to achieve lower costs relative to competitors through productivity and efficiency improvements, elimination of waste, and tight cost control. | :[[Cost leadership]]. Organization's ability to achieve lower costs relative to competitors through productivity and efficiency improvements, elimination of waste, and tight cost control. | ||
| + | According to the [[Strategic Management by David and David (15th edition)]], | ||
| + | :[[Cost leadership]]. One of Michael Porter's strategy dimensions that involves a firm producing standardized products at a very low per-unit cost for consumers who are price-sensitive. | ||
[[Category: Accounting]][[Category:Articles]] | [[Category: Accounting]][[Category:Articles]] | ||
Latest revision as of 21:45, 15 July 2020
Cost leadership is organization's ability to achieve lower costs relative to competitors through productivity and efficiency improvements, elimination of waste, and tight cost control.
Definitions
According to Cost Accounting by Horngren, Datar, Rajan (14th edition),
- Cost leadership. Organization's ability to achieve lower costs relative to competitors through productivity and efficiency improvements, elimination of waste, and tight cost control.
According to the Strategic Management by David and David (15th edition),
- Cost leadership. One of Michael Porter's strategy dimensions that involves a firm producing standardized products at a very low per-unit cost for consumers who are price-sensitive.
