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because otherwise you will become bankrupt idiot.
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∙ 12y 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 are the costs of business known as?
if you are talking about the costs associated with running a business, they are called "operating costs" there are also the costs that are required to get a business running, they are called "startup costs"
What is indirect costs?
An indirect cost is business expenses that are not directly related to a particular product or function within the general operation. Costs of this type tend to have an impact on the overall operation of the business. Marking it very difficult to charge the costs to a specific department or associate them with one function.
Why do costs need to be controlled and Why is it important to monitor budgets?
Costs need to be controlled because your costs cannot exceed your budget or you will have a negative balance; thus you would not be making any money. you also need to monitor your budgets as your budget always needs to be more than your costs or your business will go out of business.
Importance of fixed costs?
Fixed costs are as they are described fixed. In other words they are regular costs that occur every month and do not change. The office rent. The office electricity The ten people who you employ full time. etc If you sell nothing you will still have to pay your fixed costs. Why is it important is because the higher the fixed cost is the more you have to sell to just break even and not loose money. They are important as if they get out of control they will go up and set the bar higher to just break even to stay in business
What is the connection between profit costs and expenses?
Profit, costs, and expenses are important within any business' profit and loss statements. The connection is that anything that is more than the costs and expenses of a product or service offered by a business is profit.
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.
Why is it important for a business to control its costs?
A business does not want to lose money. It could easily be forced to cease operations if the money being spent is more than what is coming in.
Why is it important for a business to calculate business costs?
To know what they have spent....
Why are costs profit and revenue important?
Revenue is important because it is the money that comes into the business and the business will be able to use it on any possible equipment or resources that are needed. Profit is important because it is the money the business has after deducting all the costs. The business will be able to spend this money on any equipment or resources that are needed. Costs is important because it helps the business see how much money this business will have after payng for all the costs.
What is the importance of food cost control?
The importance of food cost control is to maintain profit margins for the business. In a restaurant food costs and labor are the highest expenses to the business.
Principles of costing and business control systems?
Principles of costing involve accurately determining the cost of producing goods or services. This includes identifying all relevant costs and allocating them to the right cost pools or cost centers. Business control systems, on the other hand, refer to the processes and mechanisms put in place to monitor and regulate business activities. These systems ensure that resources are used efficiently, risks are managed effectively, and desired outcomes are achieved.
Why doesn't the health care bill control costs?
Our government does what business wants it to do, no matter which party is in power. Costs are not controlled because business already knows what they want costs to be, don't want the government to change it.
Why is it important for a business to know about all its costs?
•Lower costs mean higher profit. •They show managers are efficient. •If costs are kept down, more money can be spent (invested) to improve the business. •If you can lower costs, you can lower prices and sales will increase. •The business must know what its costs are in order to cut them. •If costs are high it shows the business is wasting money.
Importance of cash to a business?
cash is important to a business so they can pay of any of their debts or other costs such as loans
Why is revenue important to all business's?
Revenue is important because it tells you how much money overall is coming into the business and after subtracting the costs you can see what your overall profit is.
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.
