Business Management

In this slow economy, many business owners are looking for ways to cut costs. Cost-cutting reviews should be done yearly to ensure the efficiency and effectiveness of your business. Operating at...

Small businesses struggle with finding their bottom line. "How much money did we make this year?" Simply finding the income is easy enough, but finding out the actual profit made is much harder....

Inventory” is list of goods & material. While, “inventory cost” is the cost of holding these good in your stock. Inventory is a visible & significant asset for a company. Moreover,...

This article will help individuals, small companies (less than 500 employees), and non-profit organizations decide how to apply for patents in the U.S. You probably still need a patent lawyer for...

There's nothing worse than being owed money, especially when you're running a business. A bank levy is a tool many people use in order to issue a legal claim against someone for monies due. The...

Unit cost is a business term that refers to the cost per unit or item. Calculating unit cost helps consumers to better compare prices to derive the best bargain. This is especially helpful when...

Producer surplus is a term used in economics to represent the additional economic benefit that a producer of product or service receives above and beyond the lowest amount of money it is willing...

The recent economic recession has caused the businessmen to worry about every little cost. The small business owners have specially found it hard to keep a balance between the costs and the...

When people are being trained on a new procedure or way of doing things, they often expect training materials. In calculating the cost of developing materials for trainees, take into consideration...

Management accounting is the use of accounting data to assist the management team with information useful in the decision-making process. This makes decision making more of a scientific process...

The first and most important goal of a business is survival, and that depends upon taking in more money in revenues than is going out through business expenses. Of course, bringing in sufficient...

Being conscious of how much you're spending is a smart way to manage your finances. When trying to determine how much bang you're getting for your buck, determining cost per square foot can...

POS is an acronym for point of sale, which is a form of retail transaction. A POS system is a sophisticated computerized cash register system, and is widely used in most transactions of this type....

Transfer pricing is used to set the internal price of goods and services that move between the divisions or business units of a corporation. Transfer pricing is used throughout the corporate world...

Depreciation is most useful in accounting for the loss in value for assets with a short or fixed service life. The matching principle, used in accrual accounting, is an accounting convention that...

If you take one bite into an apple and let it sit, over time, the bite mark will begin to brown. The browning effect is analogous to the term "depreciation". Depreciation is an accounting term...

How many times you stuck in the middle of the project with no budget to move on? It seems that every PM have to deal with it. So, how can you avoid it? and yet, do the right thing for the...

A management accounting system collects financial data from business operations such as sales data, shifts in inventory and changes in raw materials costs, then converts the information to...

Have you ever wished you could afford to have a consultant look at your small business and tell what you need to grow it? Many feel that way. Others may feel that all those statistics and analysis...

This article will cover at a high-level how to manage project costs.

The decision of how to price your product will make or break its acceptance by the marketplace. End-user pricing should drive your project management from the beginning, to ensure that your cost...

This brief article discusses how to manage a projects using cost, resources (People) and timeline.

Managerial accounting is an essential function that makes managing a business more of a science and less of a gamble. Unlike financial accounting, managerial accounting is an inward focused...

A T-1 connection is a high-speed information line capable of transmitting 1.5 mbps of information. T-1 lines are substantially more expensive than a dial-up internet connection, as well as many...

Cost of Goods Sold, or COGS, is the amount a merchandising company paid for the goods sold during a given period. It's important to know that this is not price at which the goods were sold but the...

Although a well-done budget allows you to predict expenses and earmark money to cover them, it is never a bad thing to change course to save money. Whether you need to assess your finances before...

Managing inventory is a crucial aspect of a successful retail business. Having the right product and the right amount of that product on the shelves at the right time maximizes profits....

The use of preventive maintenance strategies in the workplace is meant to achieve three things: a lower cost of replacement, a safer environment and a more efficient use of material. When...

Price margin (also called gross margin) is the part of a product or service's price in excess of cost, expressed in dollars or as a percentage of the price. Businesses normally use markup formulas...

No longer must one have to travel to get the job done. Video conferencing allows individuals and groups to meet with each other from their offices anywhere in the world. Time spent being away from...

Inventory accounting involves the valuation of inventories and accounting for changes in inventory. Inventory can change in value due to obsolescence, deterioration, decreases or increases in...

BCWP, or budgeted cost of work performed, is a measure of how much was budgeted for the amount of work that has been performed. It's often used in construction projects but can be used in the...

In order to calculate efficiency ratio, examine the cost of power being put out and divide that by the cost of putting power in. Find out how home appliances can have different efficiency ratios...

Cost basis is calculated by eliminating any kind of commissions that would normally be included in what was sold or what was paid. Find out why commissions don't factor into cost basis...

In order to calculate gross profit, take the net sales and subtract the cost of sales. Find out how gross profit is essentially revenue minus the cost to produce that revenue help from two...

Just in time (JIT), total quality management (TQM) and total cost of ownership (TCO) are just a few of the myriad ways manufacturing companies have come to measure and quantify the costs...

Stock turnover is the same as inventory turnover. To maintain a profitable business a firm must find the right inventory balance. The stock turnover ratio compares the cost of goods sold with the...

When preparing profit and loss statements, start with the revenue, the cost of goods sold, the cost of production and determine the gross margin. Find out how to arrive at a net income with help...

If you borrow from three creditors and each one charges you 3 percent interest, your cost of debt is 3 percent, but what if you have different amounts of debt at various interest rates? A paper...

EVA, or economic value added, is a non-GAAP (generally accepted accounting principles) financial performance metric. EVA is a measure of shareholder value and is said to be an estimate of the...

Art and craft pieces are becoming a growing commodity both online and at local street fairs. Many artists and crafters struggle with pricing their wares and often sell out or go under. So how do...

Machine shops provide a valuable service to their customers. For a machine shop to have a profitable business, the service rate should cover the cost of doing business plus have a certain amount...

Pricing your remodeling services is simple, but sometimes it can be tricky to balance a fine line of what you need to charge in order to keep your business going and at the same time compete with...

Steel is an extremely durable material that is commonly used in the construction of sturdy structures such as skyscrapers and bridges. The production of steel comes at a high cost and steel...

Looking for alternatives to get your staff to report what they are doing without increasing your labor costs? Below are options for typical staff reporting and some newer ideas as well.

Holding a seminar on a particular topic can teach people something new, re-educate people on something they already know and introduce advances in your industry. But holding a seminar can be...

Cost plus profit is the amount of money that a vendor makes for a product based on the cost of production and an agreed upon amount of profit. Use cost plus profit to quote a product price with...

CPI is defined as the consumer price index. It is the measure of the average cost of goods and services purchased by households nationally, regionally and locally. Learn how CPI uses the cost of...

The definition of gross profit is the basic revenue of a business minus the cost of creating that business. Determine gross profit for a business by figuring out the difference between revenue and...

A retail margin is the way a product's price is marked up to its limit for retail sale. It takes into account the wholesale cost of the goods and then subtracts this from its sale price. This...