This student guide is intended to assist persons employed as supervisors in learning to reduce costs. Discussed in the first four sections are the following topics: costs (functional, fixed, and variable costs and ways of controlling costs); cost consciousness (getting people involved, passing on information, and getting and giving feedback); and checklists for cost reduction (checklists for the work team; materials; and machines, equipment, and services). Each of these sections contains an introduction, instructional text that is interspersed with reinforcing learning activities, and a section summary. The fifth part of the guide includes a series of performance checks (an end check, a tutor check, and a work-based project). A unit review, which also includes a description of related extension courses and resources, concludes the guide. (MN)