I don't believe managers can operate with that kind of precision. I don't know how they'd execute the "let's spend 200$ more" idea. You're either in a quality or in a cost reduction mindset usually, these are _really_ difficult to mix for management. I know I've tried :) When you even bring up how long something takes, that can already have adverse effects on quality without you actually decreeing anything.
Well, they can, and at least did. I know because I was one of them! The P&L that I rolled up to our execs was dead simple as well. I think everyone had a pretty clear picture of what was going on, down to the fraction of the hour.