Reduce the Rate of Cost for the Input Used to Produce the Output
Use the same type of input and the same activities, but pay less for the unit of input employed in producing the output. A reduction in rate is equivalent to a reduction in the number of inputs for the same ICD. For example, if a person who makes $10 per hour could produce the same amount of output as a person making $20 an hour, the substitution of the $10 person for the $20 person in the process would be equivalent to cutting the number of people required to do the work by 50%.
D. Use subsidies offered by third parties to reduce total rate:
While the company may pay the regular price to the vendor of the product, subsidies available in the market place may reduce this effective rate by offsetting part or all of the purchase price.
Use government sponsored programs:
Business development policies
|1||3663||2000||Chinese policy makers are aiding Konka in its international expansion with tax credit, cheap capital and speedy approvals for moving people and resources.|
|2||3674||1989||Japan's cheaper money allowed Japanese chipmakers to keep investing during industry downturns when smaller U.S. firms cut back or dropped out.|
|3||3674||1998||SEMATECH was formed in 1987 by 14 U.S. Semiconductor manufacturing firms that together accounted for more than 80 percent of U.S. Semiconductor manufacturing capacity, and was financed jointly by member firms and the federal government.|
|4||3711||2007||In order to keep its Chrysler plant that produced a slow-selling SUV open, the state of Delaware proposed a package of incentives, including a workers-compensation bill which Chrysler had been pushing and tax breaks. However, many domestic automakers are posting such large losses that state incentives are rarely large enough to compensate.|
|5||4955||1997||The brownfields national partnership is an expansion of the brownfields initiative, it brings together 15 fed agy's, implements a new round of project grants, and promotes a legislative package of incentives to encourage Brownfield redevelopment.|
|6||7011||2007||Jiminy Peak Mountain Resort undertook a huge project to employ windmills to reduce energy costs. They did so with the aid of grants from the Massachusetts Technology Collaborative and loans. Loans are not typically given for capital improvements but the Collaborative saw an opportunity to promote the use of alternative energy sources. Jiminy will partially offset its investment by selling renewable energy credits to Community Energy Inc. When the resort was faced with higher than expected costs, the Collaborative met bank conditions by agreeing to purchase the energy credits for seven years. The resort plans to pay off its loans and bring in extra income from the sale of credits. Once the turbine is paid off, the resort will essentially be operating on free energy.|
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