Difference between revisions 514523803 and 533700532 on enwiki

{{Refimprove|date=December 2006}}

'''Spend management''' is the way in which companies control and optimize the money they spend. It involves cutting operating and other costs associated with doing business. These costs typically show up as "operating costs" or SG&A (Selling, General and Administrative) costs, but can also be found in other areas and in other members of the supply chain.

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Because cost cutting affects a company's bottom line directly, certain types of cost cutting can be the quickest way companies can increase their market value. The typical consensus is that the revenue to cost ratio is about 3 to 1
<ref>Citation Required</ref>; for instance, increasing revenue by $300 has about the same effect as cutting costs by $100.

This is why, in hard times, companies typically turn to cost-cutting measures such as layoffs and product quality reductions. However, most analysts agree that this short-term tactic creates little long-term value, nor any long-term sustainable savings. This is why "Spend Management" has become a key long-term strategy for companies seeking to maintain long-term and sustainable value.

(contracted; show full)==References==
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[[Category:Management accounting]]
[[Category:Procurement]]
[[Category:Supply chain management]]

[[sk:Riadenie výdavkov]]