Cost-inefficient

Describing a process, system, product, or service that requires a disproportionately large expenditure of resources, especially money, relative to the benefits or outputs it generates. A cost-inefficient undertaking fails to provide value for the resources invested, leading to either higher operational expenses or lower returns than comparable alternatives. Factors contributing to cost-inefficiency include poor planning, technological limitations, resource mismanagement, redundant processes, or inadequate scale. It signifies a failure to optimize resource allocation, resulting in a waste of financial, material, or human capital.

Cost-inefficient meaning with examples

• The old printing press, while operational, proved to be cost-inefficient. Its slow speed and frequent breakdowns required excessive maintenance and produced low yields per unit of ink and paper. Investing in a newer, more efficient model would have significantly reduced operational expenses and improved output, increasing profits and cutting costs.
• Building a bridge for a very small population is a cost-inefficient project. The expense of materials, labor, and ongoing maintenance would far exceed the economic benefits of the limited traffic it would facilitate. A ferry service, while not perfect, offers a considerably cheaper and more adaptable means of transportation in this specific scenario, making it a more cost-effective solution.
• Relying solely on human labor for a repetitive task often proves cost-inefficient in the long run. Despite initial lower costs, the human error rate, the need for training, and the need for constant supervision quickly drive up expenses. Automation, through machines or software, although potentially involving a higher upfront investment, often yields better outcomes over time.
• The research project, as initially designed, proved cost-inefficient. Its extensive scope and overly ambitious goals meant it consumed a vast budget without yielding any significant discoveries. After the design had been re-engineered, the project was reduced in size to be both streamlined and cost-effective and deliver more valuable results.