- Research, production and sales effort can be directed towards those products and services which ABC has identified as offering the highest sales margins.
- ABC can influence decisions as to which:
- new products/services to develop
- existing products/services to curtail or drop
- products/services should be promoted
- overhead costs to target.
Test your understanding
Identify for a hospital x-ray department possible cost drivers for the following activities:
§ equipment preparation
§ patient preparation
§ patient aftercare
§ film processing
§ film reporting