Cost Reduction Achievement
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Category:  
Operational

Measures the extent to which a company has successfully reduced its costs.

What it Measures ?

Are we meeting cost-saving goals?

Relevant StakeHolders 

CFO, Finance Controller

In-depth Use Case / Real-world Example

Cost Reduction Achievement is the percentage of target cost reductions achieved within a specified period. For instance, if a company sets a goal to reduce costs by ₹1,000,000 and achieves ₹800,000, the cost reduction achievement rate is 80%. Tracking this KPI helps measure the effectiveness of cost-cutting initiatives and identify areas for improvement. A high achievement rate indicates successful cost management, while a low rate suggests the need for better control over operational expenses.

KPI Definition

Business Value

Movement Direction

Sample Formula

(Cost Savings Achieved / Targeted Cost Savings) * 100

Should Aim For
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