Chasing Nickels Around Dollar Bills
A slang term describing what a company's management does when it decides to trim small, trivial costs instead of cutting larger, more serious costs. All too often, managers will cut the difficult costs as a last resort, when in fact the company would be much better off if the larger costs had been dealt with earlier. Investopedia Says:
For example, if management starts charging employees for coffee in the morning when the real solution to budgetary problems might be layoffs or discontinuing a certain line of business, then you know someone's chasing nickels around dollar bills! Related Terms:
Budget
Fixed Cost
Layoff
Salary Freeze
Selling, General & Administrative Expense - SGA
Variable Cost |