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What is the Difference between profit maximization and sale maximization?
Wiki User
∙ 14y ago
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.
Wiki User
∙ 14y ago
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Why is wealth maximization a better operating goal than maximization sale?
The wealth maximization increases the net value that is current. The maximization sale involves obtaining the highest amount of sales without incurring any loses. Each, especially when used together, can be the better operating goal depending on the situation in which they are needed to be used.
What is the difference between margin and profet?
Margin is what you've made after the sale minus cost to make it. Profit is when other costs are deducting like utility, wages, rent, taxes.
Difference between retail and hospitality?
Retail provides a product for sale. Hospitality provides a service for sale
What is the difference between mudharaba and murabaha?
Murabaha is a sale contract with a bank whereby, the bank purchases the goods, and then resells them to the client with an agreed upon profit margin.& Mudaraba is a partnership w/the bank where they provide 100% of the funds and you provide expertise
What is the difference between a foreclosure and short sale?
A foreclosure is the surrender of the property to the lien holder for nonpayment of the debt. A short sale is the sale of the property before the completion of the foreclosure in an attempt by the home buyer and the lender to avoid foreclosure proceedings.
What is profit maximization of corporation?
Profit Maximization is a process that companies undergo to determine the best output and price levels in order to maximize its return. Companies usually adjust production costs, sale prices, and output levels as a way of reaching its profit goal. Profit maximization is a good thing for a company, but can be a bad thing for consumers if the company starts to use cheaper products or decides to raise prices.
What is economical profit?
Difference between revenue received from sale of an output & the opportunity cost of inputs used. (EVA)
What is measured by profit margin?
Profit, is called the difference of amount between purchase price and sale price. Through the profit margin we come to know that how the business is running. Or, how successful (profitable) IS this business?
Why is wealth maximization a better operating goal than maximization sale?
The wealth maximization increases the net value that is current. The maximization sale involves obtaining the highest amount of sales without incurring any loses. Each, especially when used together, can be the better operating goal depending on the situation in which they are needed to be used.
What is the difference between a net profit and a net sale?
Well net profit is the profit that you get after paying all your taxes, and after all the expenditure of the year!!! But net sale is the actual sale - Sales returns. For eg., lets say you sold goods for rs.5000 and goods amounting to 1000 were returned. So here rs.5000 was revenue and 1000 is sales returns. So net sale is 5000-1000=4000. Now consider, you have carried on some repairs in office or whatever that cost you 2000, so your net profit will be 4000-2000=2000 So, this is the main difference b/w net profit and net sales.
What is the difference between margin and profet?
Margin is what you've made after the sale minus cost to make it. Profit is when other costs are deducting like utility, wages, rent, taxes.
What is the difference between cash sale and credir sale?
A cash sale is instant - a credit sale is a 'promise' of payment to come.
When is economic profit said to exist in a market?
difference between the revenue received from the sale of an output and the opportunity cost of the inputs used. This can be used as another name for "economic value added" (EVA).
What is the difference between atm and debit card?
difference between debit cards and ATM cards Debit cards, there are points of sale or ATM cards, there are no points of sale
What is difference between sale and sell?
Sale is a noun; and sell is a verb. Examples: "I made a sale." "Did you sell your car yet?"
What is the difference in buying spa products at wholesale and retail price?
There is a large difference between wholesale and retail prices for any product. Wholesale price are much lower so the retailer is able to markup the price and make a profit off the sale of the item.
Difference between the original price and the sale price?
Discount
