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Explain five ways in which large scale organization are able to reduce their costs of production

Explain five ways in which large scale organization are able to reduce their costs of production

Answers

Davis
- Large quantities
- They buy in bulk, hence they get a good quantity discount, hence
reduce their purchase
expenses
- Transport costs
- They buy in bulk, hence they transport they goods at once, which
reduces on transport costs.
- Skilled manpower
- They are able to employ skilled personnel, who provides quality
management reduce on losses, and hence maximize profits
- Use of machinery
- They are able to afford machinery which in turn reduce on labour
costs, hence reducing production costs
Research
- They are able to carry out research, hence producing quality products
and with the least wastage, hence reducing on production cost.
Githiari answered the question on September 19, 2017 at 15:09

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