From the course: Corporate Finance: Profitability in a Financial Downturn
Join today to access over 22,600 courses taught by industry experts or purchase this course individually.
Benchmarking your costs
From the course: Corporate Finance: Profitability in a Financial Downturn
Benchmarking your costs
- Have you ever heard the phrase, "Keeping up with the Joneses?" It usually means that people are trying to keep their consumption as high as everyone else around them. But for companies looking to boost their profitability, it's actually the other way around. You want to try to keep your expenses as low as every other company around you or even lower, if possible. And the way to do it is by benchmarking your expenses. Benchmarking is looking at the data for companies or industries to identify what the average level of spending in different categories looks like. It's something that companies might do or external consultants might do when they're trying to dig into the numbers in a spend analysis. The goal of a benchmarking is to help a company get to a position of what's called cost leadership. This is where you are a leader in lower cost. You're not the lowest cost provider, but you might give the best value…
Practice while you learn with exercise files
Download the files the instructor uses to teach the course. Follow along and learn by watching, listening and practicing.
Download courses and learn on the go
Watch courses on your mobile device without an internet connection. Download courses using your iOS or Android LinkedIn Learning app.