An indicator to measure redundant activities and unnecessary costs!

[zarifpayam]

If an objective of your ORG was to lower unnecessary costs and redundant activities how would you measure that?

[JeanK]

Hi there.

One suggestion I can make regarding the costs is: Evaluate your current spending, see where it can be lowered. And then budget, and evaluate regularly (weekly/monthly basis).

For redundant activities, what about making journal for daily activities?

[zarifpayam]

The question is wether we should keep track of these redundant costs from within each department to find them or there is another place like financial reports of the production cost that it is all reflected!
the company consists of 6 departments.
aout the redundant activities i agree with you.
thnx anyway.

[JeanK]

You're welcome. Glad I can help.

Regarding the costs, now that I understand your question, there should be a monthly (month-end) closing report where it shows how much each departments spends. From there you evaluate if those numbers are justified by the nature of those departments. Do you have everyday expenses recorded properly (to its proper General Lodger code) on daily/weekly basis?