Cost optimization techniques in project delivery in Akwa Ibom
The success that any producer may record in selling his goods or services profitably is likely to depend upon his ability to control his cost and upon the extent to which he can keep them below the selling price imposed upon him by competition.
Therefore, cost optimizationcan simply be defined as the regulation, limitation or confinement of cost.and it can also be defined as the regulation by management action of the cost of operating an undertaking ,particularly where such action is guided by cost accounting.
It covers the control of materials usage and prices of wages cost separating the effect of efficiency from rates of pay, or maintenance and service cost, and all other items of indirect expenditures.
In an organization it is an act of making necessary adjustments after comparing the actual cost with a standard or targeted cost the control process include the steps of establishing standards and taking corrective measure.
Studies dealing with potential cost optimization and various adjustments to which may results in cost optimization are therefore very essential for improving the efficiency with which the conduct of any business is performed, such a resultant improvement can be of immence benefit to both the marketers and the ultimate consumers of the products of the business.
Effective cost optimization consists of two aspects they are operational cost optimization consists which has to do with type of control, which exist in the very small firms where the sole owner could personally control cost through personal observation and direct supervision of operation. Accounting cost optimization on the other hand involves creating a sound system records keeping which will establish accountability for cost and the employment of current, pertinent and concrete accounting and statistical reports to reveal how people who are responsible for cost are discharging their responsibilities.