Financial Management Strategies: Profitability Management

Question 1

Cost controls (fixed and variable)

Answer 1

Managing costs by keeping them as low as possible.

Question 2

Cost centres

Answer 2

Making each department in the business responsible for their own costs e.g. marketing responsible for lowering promotion costs, HR responsible for lowering staff costs, operations responsible for lowering supplier costs

Question 3

Expense minimisation

Answer 3

Keeping all expenses as low as possible

Question 4

Revenue controls (marketing objectives)

Answer 4

Using the 7Ps to increase revenue