The question is whether the business should stop making a product when it is unprofitable, or continue making the unprofitable product?
Posts published in “BUSINESS MANAGEMENT”
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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 different types of costs in a business. Let's consider costs when producing one type of product and many types of products.
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.
Finance managers need to consider many factors when it comes to making the strategic finance choice between alternative sources of finance.
Subsidies are sums of money given by the government to producers of commodities which are widely used by the majority of the society.
Government grants are non-repayable funds, ‘financial gifts’, a complimentary finance that does not need to be repaid in the future.
Business Angels are informal wealthy investors who invest in high-risk and high-return entrepreneurial businesses at a very early stage.
Venture Capital (VC) is capital invested in business start-ups or growing small and medium businesses offering innovative technology.
Crowdfunding is the use of small sums of money from a large number of private individual people to finance a new business venture.