Remnant cost removal

To summarize this section, I need to start with two definitions first:

remnant costs: costs still left over after you have executed a major transformation like for example a divestment or a restructuring. For example, you have sold a material part of your business, but you have not yet adapted the size of your accounting department, which used to cater to your entire business prior to the divestment

Stranded costs: remnant costs that cannot be removed. For example, in the above definition, you can reduce the number of people in your accounting department, but you cannot change the license fee forthe accounting software that you have in use.

Remnant cost removal, then, deals with the challenge of how to really adjust your operations in such a manner, that your profit & loss is also freed of these costs you now have left over after that major restructuring you did.