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paraphrase this sentence to make it make sense. It would involve identifying a strategy integrated with the master budget to reduce expenses and increase
paraphrase this sentence to make it make sense. " It would involve identifying a strategy integrated with the master budget to reduce expenses and increase profits. First, the warehouse staff must create a baseline or standard to compare it with the actual costs. Setting achievable standards using the financial results would help the company attain the best cost performance. Secondly, the company needs to calculate the budget variance between the baseline or standards and the actual results. It should emphasize detecting the unfavorable variable where the actual costs are higher than the baseline. An immaterial variance should be reported to the management. The third cost control action involves investigating the variances to determine way they are unfavorable. The last step would be taking the most appropriate measure to address the conflict. The warehouse needs to restructure budget costs to force the actual expenses incurred to match the budgetary prices (Lyu et al., 2020). Also, the company can outsource a third party to perform some of the warehousing tasks to control the actual costs. (Minashkina and Happone, 2020). In addition, the company should start small, define its expectations clearly, understand risks and fees, and leverage the best cost management software. Please cite the sources and date
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