The importance of knowing which costs are fixed and which costs are very important in making a business profitable. In order to budget effectively, one needs to know costs that will always be the same (fixed) and the ones that sometimes change (variable).
To facilitate decision making and effective managing of the business.
accounting information allows a business entity to be able to ascertain its total income and its total expenditure and to be able to know if it is making a profit or loss as the prior motive of any organization or business entity is to maximize profit
Marginal cost is change in total cost due to increase or decrease one unit or output. It is technique to show the effect on net profit if we classified total cost in variable cost and fixed cost.
Labor cost is variable cost because labor is paid for every single unit of product is made. For example if labor cost for making 1 unit is 10 then making 10 units will be 100 so as much as production level changing labor cost changing that;s why it is variable cost.
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Financial management is the managing of income and expenditure and also about making decision that will enable the business to survive financially. The aim is to create ggggggggggggwealth and generate cash in order to make the business profitable.
helpfull in decission making to know the business opportunity. adoptive profitable business plan.
The importance of decision making is that it helps in planning for the next course of action. In business, good decisions will yield great returns on investment.
Yielding lucre; gainful; profitable; making increase of money or goods; as, a lucrative business or office., Greedy of gain.
A feasibility study figures out if starting out a business would be profitable or viable. There is a complete feasibility study, done in Nigeria, on soap-making, that is available for view on YouTube.
To facilitate decision making and effective managing of the business.
A profitable organization refers to an organization that is run with the purpose of making profits. A non-profitable organization on the other does not making any profits and mostly depends on donors for their operations.
Making sure that all your customers are satisfied and happy with the service they are getting.
If you are interested in your business being a corporation, than you should incorporate before making a profit, not after. It is just one of the first steps to a successful business and will help you in both record-keeping and being prepared to file your taxes after you become profitable.
what will be the maximum wage that firms are willing to pay in laws of variable proportion show graphically
Bear in mind that there is already a puffed rice product on the market, called Rice Krispies, which is made by Kellogg's, and has excellent distribution and is available pretty much everywhere. If you want to sell puffed rice, you would be competing with this established product. That could be difficult.
A business will function based on how consumers behave. It is important to keep up with the behavior in order to keep making a profit.