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because the lower the cost the more profit the business makes
profit = revenue - cost
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∙ 13y ago
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Why to control cost and budget?
It is important to control cost and budget that a business is able to stay open and profitable over a length of time. Keeping costs down and profits high is essential for the longevity of a business.
What did a men's business suit cost in 1949?
In the 1940s, the cost of a men's business suit started around $24.50.
Cost of revenue?
The cost of revenue is the money spent to make profit for a business. All business have to spend money to make money.
In what business sector are cooperatives still important?
agriculture business
What Is A Business Cash Advance Cost?
Cost is determined on a case-by-case basis. Several elements, along with reimbursement time, underwriting assessment of business cash flow, and FICO score may additionally affect cost of a business cash advance.
Why are smart systems important in small business's?
Smart systems are technologies that can enable a business increase performance, minimize size, and reduce cost. These aspects are all important for a business to be in control of.
In the field of business what does the term 'relevant cost' mean?
The basic definition of relevant cost would be the costs that are important to running a business. The most important costs that the business needs to run properly. Examples would be rent for the office space, utilities, or equipment to name a few.
Why to control cost and budget?
It is important to control cost and budget that a business is able to stay open and profitable over a length of time. Keeping costs down and profits high is essential for the longevity of a business.
What is social cost benefit analysis why is it important?
Social cost benefit analysis means that a business assesses the social ramifications of a business decision before doing it. It is good for business, so that they can plan to mitigate the damage they may cause by a decision that is unavoidable.
What is the importance of e-business?
E-business is important because it is time efficient and cost efficient. It also saves paper and the fuel associated with commuting.
How are cost's revenue and profit linked together?
These all linked together because these are all important for the business.
Why is cost important in a business?
It's important because costs, fixed and variable, have to be paid regardless of how much is produced, or else the business will shut down or go bankrupt. They are also important to consider because they must be subtracted from revenue to find profit.
What is cost to a business administrator?
how much does it cost to become a business administrator
What is the difference between WACC and cost of capital?
Cost of capital is that amount which is incurred by business to acquire cost for working capital or business while WACC(Weighted average cost of capital) is that cost which is calculated if there is more than one type of capital is involved by business to arrange finances for business.
Importance of cost classification?
The importance of cost classification to a business should not be underestimated. Cost classification is important because it makes it easier to gather the methods used for accumulating cost data. It also maintains effective supervision in a company.
Why is it important for people to complete a cash flow forecast and to calculate break even levels for her business if it is to be managed effectively?
In basic - Its important that the business owner sets out the expected cash out and cash into the business and also the cost of running the business to the hourly rate (daily rate in some companys). By knowing what its costing to run the business each hour you can then work out the break even figure ( no profit and no loss) and by adding an acceptable percentage to the product/running cost you have the profit margin
Can you do business without studying business law?
IF we like business then why study is important nothing is important in business
