Posts published in December 2021

Revenue streams refer to different types of sources of revenue that a firm has. Revenue is all the money coming into the business. 

Classifying costs is an important job for business managers, especially Production and Marketing managers who make product-related decisions.

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?

Dividing business operations of the whole organization into Cost Centers and Profit Centers is important to any large business.

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 how the costs are classified in a business organization. In general, business costs can be classified in several different ways.

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.