Question: During a downturn, you must cut 10% FM costs without hurting operations. What’s the smartest strategy?
A. Renegotiate vendor rates
B. Reduce manpower in soft services
C. Defer non-critical CAPEX
D. Optimize scopes using activity-based costing
Comment with the "right option and your explantion"
.... Read MoreQuestion: During a downturn, you must cut 10% FM costs without hurting operations. What’s the smartest strategy?
A. Renegotiate vendor rates
B. Reduce manpower in soft services
C. Defer non-critical CAPEX
D. Optimize scopes using activity-based costing
Comment with the "right option and your explantion"
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20 November, 2025 at 11:35 favorite_border 1
Answer : D. Optimize scopes using activity-based costing. This is a strategic approach. By analyzing activities and their cost drivers, we can: # Eliminate low-value tasks. #Consolidate overlapping services. #Adjust service frequency based on actual usage. #Maintain operational integrity while achieving sustainable cost reduction.
20 November, 2025 at 11:30 favorite_border 1
The best option is D. Optimize scopes using activity based costing, remaining options are provide immediate savings but they will not provide long lasting solutions. When it comes to ABC we can check and study every activity and prioritize and allocate the fund as per the requirement saves money and improve the efficiency as well.
20 November, 2025 at 11:22 favorite_border 1
Right Option is D -Optimize scopes using activity-based costing as This approach provides accurate, evidence-based insights into where money is being spent, helping separate high-value tasks from low-impact ones. It protects core operations while trimming avoidable costs.
20 November, 2025 at 11:07 favorite_border 1
Optimize scopes using activity-based costing
20 November, 2025 at 11:01 favorite_border 1
Right option -D : Optimize scopes using activity-based costing. Explanation: Activity-based costing lets you pinpoint and remove low-value tasks, optimizing scopes without reducing service quality—achieving sustainable savings without hurting operations.
20 November, 2025 at 10:58 favorite_border 1
Smartest Strategy: “Prioritized Optimization + Vendor Rebalancing” A three-lever approach gives a clean 10% cost reduction without operational pain: --- 1️⃣ Conduct a Zero-Based Review of Non-Critical Cost Buckets Instead of across-the-board cuts, identify cost areas that do NOT affect daily operations. Targets usually include: Consumables (cleaning supplies optimization) Admin overhead (printing, pantry, stationery) AMC contracts with scope padding Unused or lower-utilized services (excess manpower, extra shifts) 👉 This alone gives 3–4% savings with no operational impact. --- 2️⃣ Renegotiate Vendor Contracts & Consolidate Suppliers Vendors are more open to negotiation during downturns. Actions: Rebid existing contracts or launch a quick RFQ Consolidate multiple vendors into 1–2 large vendors Shift some services to performance-based SLAs Ask for indexation freeze for 12 months 👉 Expected savings: 4–5% without reducing service quality. --- 3️⃣ Optimize Manpower Through Productivity, Not Headcount Cuts Instead of cutting people, improve efficiency. Examples: Multi-skilling (housekeeping + pantry support) Zone-based deployment instead of fixed posting IoT tools for washroom cleaning alerts Smart shift scheduling for security/housekeeping 👉 This gives 2–3% savings with no operational downtime. --- 🎯 Combined Saving = 9–12% With ZERO impact on day-to-day operations.
20 November, 2025 at 10:52 favorite_border 1
Optimize scopes using activity-based costing
20 November, 2025 at 10:42 favorite_border 1
D.Optimize Scopes using activity -based costing
20 November, 2025 at 10:40 favorite_border 1
D. Optimize scopes using activity-based costing Explainatnion - Because during a downturn, the goal is to cut cost without hurting operations.