ABSTRACT
Road transport is a flexible mode of transport, however, management of road transport companies is faced with technical, legislative and economic problems (Sukalvoa and Ceniga; 2014). Management is usually compelled to adopt different methodologies and techniques in order to manage costs rather than to reduce them (Siyanbola; et al, 2013). In many cases, managers try to simply cut costs without considering the organizational or operational effects associated with those reduced costs (McDermott; 2011). Such strategic cost cutting must be designed cautiously since not all cost reduction techniques give up the same benefits (Sim and Killough; 2009). At Pathfinder, management tried to cut costs, but the company continued to report losses during the period 2011 to 2013 as shown in the table below. The revenue from ticket sales could not breakeven with the costs as shown in the table below. This problem was attributed to the improper cost management system of just “cost cutting without care” rather than a well management or control of costs on the company`s operations (Pathfinder management meeting minutes 23 December 2013).
Shumbac, T (2021). An Analysis Of The Effectiveness Of Cost Management System In Enhancing Profitability At Pathfinder Luxury Coaches (Pvt) Limited. Afribary. Retrieved from https://track.afribary.com/works/an-analysis-of-the-effectiveness-of-cost-management-system-in-enhancing-profitability-at-pathfinder-luxury-coaches-pvt-limited
Shumbac, T. "An Analysis Of The Effectiveness Of Cost Management System In Enhancing Profitability At Pathfinder Luxury Coaches (Pvt) Limited" Afribary. Afribary, 01 May. 2021, https://track.afribary.com/works/an-analysis-of-the-effectiveness-of-cost-management-system-in-enhancing-profitability-at-pathfinder-luxury-coaches-pvt-limited. Accessed 24 Nov. 2024.
Shumbac, T. . "An Analysis Of The Effectiveness Of Cost Management System In Enhancing Profitability At Pathfinder Luxury Coaches (Pvt) Limited". Afribary, Afribary, 01 May. 2021. Web. 24 Nov. 2024. < https://track.afribary.com/works/an-analysis-of-the-effectiveness-of-cost-management-system-in-enhancing-profitability-at-pathfinder-luxury-coaches-pvt-limited >.
Shumbac, T. . "An Analysis Of The Effectiveness Of Cost Management System In Enhancing Profitability At Pathfinder Luxury Coaches (Pvt) Limited" Afribary (2021). Accessed November 24, 2024. https://track.afribary.com/works/an-analysis-of-the-effectiveness-of-cost-management-system-in-enhancing-profitability-at-pathfinder-luxury-coaches-pvt-limited