Zooming in to Cost Components.

If a restaurants bills you for SGD 2,000 for a dinner buffet party of 20, the only "knowledge" you can get is that each person is probably costing you SGD 100.

 

If you can zoom into the bills and identify that one person ordered a caviar omelette that costs 1000, you can control your costs better by removing the omellete from the menu, and removing the person from your guest list.

 

In some organizations, millions of dollars move through them periodically. For these organizations, it is important to be able to zoom in to cost components at various levels, identify these components and control them.

 

This is the case for health insurance companies. At times they receive huge bills not knowing which procedure is costing them the bucks, sometimes they don't know which healthcare service provider is cheating them by ordering procedures that are unnecessary.