Sir I was just reading the study text and it said that cost-reduction schemes are a form of long term plan and that's why it is seen as a capital expenditure
Sir but there was this other note somewhere in the first chapter that gave an example and said that cost-reduction schemes are a form of tactical planning
Sir I'm really confused with what the textbook is trying to tell, please explain me what it is trying to convince
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tactical plans
5y ago#1It depends on the context as to whether it is strategic or tactical planning. Reducing costs can be a short-term measure or part of a long-term plan. There is only capital expenditure involved if the plan for reducing costs involves the purchase of new machinery or the like (and then it would be part of a long-term plan and therefore strategic).
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