Choosing the right source of finance to pay costs requires consideration of factors that may influence the choice of finance.
Posts published in “COSTS AND REVENUES”
So, should the business accept a special unprofitable order below total cost? At the first sight, it might appear to be unwise.
The question is whether the business should stop making a product when it is unprofitable, or continue making the unprofitable product?
Once we know about the most important equation in business, the other two crucial concepts need to be understood – Cost Centers and Profit Centers.
Contribution-Costing Technique is a method of costing in which only Direct Costs are allocated to products, not Indirect Costs (Overheads).
Full-Costing Technique is a method of costing in which all Direct Costs and Indirect Costs (Overheads) are allocated to products of the business.
A business can use costs data for making a variety of different business decisions. Here is the list of major uses of costs data.
This article is about different types of costs in a business. Let's consider costs when producing one type of product and many types of products.
The most important business equation is the formula for profit. It is because a business must satisfy needs and wants of customers profitably to be successful.
Very brief definitions of costs, price and value. Knowledgeable business managers should be familiar with differences between costs, price and value.