Policy of cutting costs to improve profitability. It may be implemented when a company is having financial problems and must "tighten its belt." In some cases, the firm is initiating a policy to eliminate waste and inefficiency. A cost reduction program may detract from the Quality of Earnings when significant cuts are made in Discretionary Costs.
Cost Reduction Program
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 | Cosmo Oil Co., Ltd. |
| Imo Industries Inc. |
| Albany International Corporation |
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 | Accounting Dictionary. Dictionary of Accounting Terms. Copyright © 2005 by Barron's Educational Series, Inc. All rights reserved. Read more |
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