XYZ Manufacturing Company is a well-established firm that specializes in producing industrial
machinery. The company has been facing challenges due to increasing competition and rising
production costs. To address these issues, the management team decided to conduct a thorough
cost analysis and make informed decisions to enhance profitability and sustainability.
Problem Statement:
XYZ Manufacturing Company has been experiencing a decline in its profit margins over the past
year. The management team suspects that the production costs have been steadily increasing,
resulting in reduced profitability. The company needs to identify the key cost drivers and develop
strategies to control costs without compromising product quality.