Choosing the right location is crucial for business success. Here is a breakdown of key factors and financial techniques involved in making a decision.
Posts tagged as “costs and revenues”
Sales forecasting helps marketing managers to estimate future sales of products and reduce the risk of unforeseen changes in the marketplace.
No professional business manager can afford to ignore other qualitative factors of Investment Appraisal in addition to quantitative factors.
Break-even Analysis provides information about break-even levels, the level of actual demand, Target Profit and Margin of Safety.
To properly construct the Break-even Chart, we need to plot the curves that indicate Sales Revenue and Total Costs (TC). Use the following five rules.
Break-even Quantity shows the level of output that the business must produce and sell at which Sales Revenue equals Total Costs (TC).
Once we know about the most important equation in business, the other two crucial concepts need to be understood – Cost Centers and Profit Centers.
All business organizations need accounting systems. This makes finance one of four core business functions.