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1. You will have to forgo profit maximization, which is the center point of any business.
So the opportunity cost would be higher profit at least in the short run.
2. Share holder dissatisfaction, which may result in the company being volatile for takeover.
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∙ 15y ago
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Is the amount of sales tax collected on sales is recorded in the Sales Tax Revenue account?
combind revenue accounts
Could Sales revenue minus sales returns and allowances and sales discounts equals?
Sales revenue minus sales return and allowances and sales discount equals?
Are sales assets?
No. Sales are part of Revenue.
When calculating sales for revenue do you include sales tax?
No.
Is sales revenue an expense or asset?
Sales is a revenue not an expense or asset while difference between sales and expense is profit which is liability for business.
Sales maximization vs profit maximization?
sales maximization technique is generally used in scale industries where base of the expenses is largelly fixed and where variable costs are limited. on the other hand profit maximization technique are used by variety of industries. total output is higher in sales maximization as compared to profit maximization
What are the criticism baumol's sales maximisation model?
Criticism of Baumol's sales maximization model includes the assumption of profit maximization as the main goal of firms, the lack of consideration for other objectives like shareholder wealth maximization, and the oversimplification of managerial behavior by focusing solely on sales revenue. Additionally, critics argue that the model does not account for dynamic market conditions and competitive strategies that firms may adopt.
What is the Difference between profit maximization and sale maximization?
The key difference between profit maximization and sales maximization focuses on the handling of costs/expenses. Sales maximization is a topline income statement action that attempts to maximize sales revenues. Sales maximization techniques are used in scale industries where the expense base is largely fixed and there are limited variable costs associated with acquiring the next dollar of sales. Profit maximization is a multiline income statement action that attempts to both maximize sales (as represented above) while minimizing expenses in order to maximize effective margin. Profit maximization techniques are used across a variety of industries.
Are slack variables only associated with maximization problems?
Slack variables are only associated with maximization problems.
What is the problems of wealth maximization?
the problems of wealth maximization is the minimumization of wealth minimumization...ask me no more thats final......,
What is the meaning of sales maximization?
i don t know
Necessary and sufficient condition for profit maximization?
Marginal Revenue = Marginal Cost
What is net cost?
sales sales revenue minus net sales revenue
Is sales revenue a revenue?
Yes it is.
What is the sales revenue if variable cost is 40000 and fixed cost is 30000 and break sale revenue is 40000?
Sales revenue = breakeven sales + Fixed Cost Sales revenue = 40000 + 30000 sales revenue = 70000 Prove Sales revenue = 70000 Less: V.C = 40000 Contribution Margin = 30000 Less:Fixed Cost = 30000 Profit (loss) = Nill
How does the goal of maximization of shareholder wealth deal with the problems?
How does the goal of maximization of shareholder wealth deal with uncertainty and timing?
What are profit maximization policies?
Profit maximization policies are policies established to increase the chances of more revenue. Many companies consider opportunity costs as a way to maximize profits.
