Answer to Question #247031 in Management for dawit

Question

Assume you are a manager of XY Company, while you conduct a vertical Sred for salary. This intern highly affected the profitability of the organization. As a manager what are the possible remedial actions that you suppose to take in order to mitigate this drawbacks?

Answer 1

The profitability of XY Company can be improved. Although a single element can sometimes considerably raise profitability, increasing profitability at XY Company entails gradually adopting a number of incremental improvements. As a manager, I will keep track of the company's expenses. Your profitability can be boosted by careful expense management. Although XY Company may be able to locate some waste to eliminate, it is critical that you do not cut expenses at the price of the quality of your products and services. I'll evaluate the available financing options and choose the most cost-effective terms. I'll make good use of any loans and overdrafts I have. Activity-based costing is a useful method for determining the true cost of various company activities. Activity-based costing (ABC) identifies how much it costs to perform a certain company function by allocating proportions of all costs - such as salaries, office space, and raw materials - to specific activities.