Silicon Valley Business School
Cut Costs: General Cost-Cutting
A Step in a Management Maneuver in the Mezzanine Stage of Startup Development

General cost cutting refers is a step in the process of cutting costs that refers to reducing costs other than staff layoffs. Fixed costs, such as rent can sometimes be trimmed when scaling down and reducing overhead. Variable costs, including product costs can sometimes be cut through negotiating terms with suppliers. All items in the cost section of the profit and loss account can be considered for cost-cutting. This step is completed when a cost cutting plan has been formulated and executed.

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