Task 4: Cost Reduction (LO4) Be able to recommend cost reduction and management processes for an organisation Scenario 5 It has been revealed in the Sandyfoot Ltd business case that the labour time has not been used effectively so far resulting in the life cycle cost of Tennis racquets was consistently high compare to the competitors. It is of course reducing the sales in the competition, as customers always look value for their money. You have been advised by your manager to: 4.1 Recommend processes that could manage labour cost reduction in Sandyfoot Ltd so as to keep the sales price of Tennis Racquets low 4.2 Provide a critique of the rise of the Activity Based Costing (ABC) costing system, why was it taken up so quickly by companies, has it been found to be beneficial, would it be appropriate for Sandyfoot Ltd?
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