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The costs of running a company are often hidden, but can be substantial. Cutting these costs is as effective as cutting the direct variable costs of labor and materials. Unlike manufacturing costs, most administrative costs are “fixed,” in that they rarely vary from month-to-month, even though revenues go up or down.

Figuring out how to reduce or eliminate specific administrative costs is essential to the profitability and long-term success of your company. Trimming these expenses will decrease the revenues necessary to break even or make a profit, provide greater flexibility in long-term pricing strategy, and improve cash flow.

States have a lot of work to do in ensuring they manage funds in order to sustain their cost of operation administration-wise, and one of the ways is to cut unnecessary expenses.

Governing a state requires a lot and if appropriate measures are not put in place in the area of spending, there could be damages and incurring of debts.

The following are ways states can reduce the cost of operation of the administration;

- Limit travel, hold more online meetings

- Reduce entertainment

- Have a scale of preference and consider vital needs first before those not necessarily important.

- Be mindful of utility costs; reduce cars, house allowances, if possible cut a lot

- Carry out renovation once in three years or when necessary

If all these are considered, it would help states reduce the cost of their administrative operations. For more on these click the link https://brainly.com/question/24241732

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