Cost-leadership firms are typically characterized by very tight cost control systems; frequent and detailed cost control reports; an emphasis on quantitative cost goals and targets; and close supervision of labor, raw materials, inventory, and other costs.

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Cost-leadership firms focus on achieving the lowest cost of production in their industry, which requires tight cost control systems, detailed cost control reports, and an emphasis on quantitative cost goals and targets. Close supervision of labor, raw materials, inventory, and other costs is also important in order to identify ways to reduce costs and improve efficiency.

Cost-Leadership Firms Are Typically Characterized by Very Tight Cost Control