A type of cost savings that result from operational efficiencies that an entity achieves or expects to achieve over and above a return on investment (ROI). These savings are re-deployed- that is, reinvested into other areas in the entity that are currently under-developed or under resourced.
Re-deployable cost savings are benefits that usually exceed bottom-line cost savings.
Lower costs, in addition to higher revenues, are key factors in the assessment of projects for the purpose of investment. Other types of relevant costs include realized cost savings and cost avoidance savings.
Comments