Cost Management 6th Edition by Edward Blocher,David Stout ,Paul Juras,Gary Cokins

Exercise 21

Research Assignment: Control of Overhead Costs; Strategy Obtain from your library (or instructor or course pack, as appropriate) a copy of the following article: K. P. Coyne, S. T. Coyne, and E. J. Coyne, Jr., "When You've Got to Cut Costs Now: A Practical Guide to Reducing Overhead by 10%, 20%, or (wince) 30%," Harvard Business Review (May 2010), pp. 74-82.
Required After reading the above-referenced article, answer the following questions:
1. In general, how does this article relate to the material covered in Chapter 15
2. The authors state (p. 75) that "administrative cost-reduction opportunities follow similar patterns everywhere." What two major conclusions do the authors offer, based on the accumulated experience in implementing successful cost-cutting programs
3. The authors of this article also state (p. 75) that cost-reduction goals typically require "ten or more actions." For each of the three classifications of cost-reduction goals discussed in the article, provide examples of specific actions that managers can pursue in an attempt to meet the stated cost reduction goal.
4. Provide a concise summary of the authors' recommended approach for determining the "right level of overhead."