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Showing posts with label fixed costs. Show all posts
Showing posts with label fixed costs. Show all posts
Wednesday 8 April 2020

Cashflow and monthly operating costs are key

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Wed, 8 Apr 2020 AFTER watching Prime Minister Tan Sri Muhyiddin Yassin’s announcement on the enhanced stimulus package for SMEs, my vari...
Sunday 30 April 2017

Understanding the importance and implications of Leverage

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Importance of Leverage Leverage increases the volatility of a company's earnings and cash flows , thereby increasing the risk borne...

Leverage

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Leverage refers to a company's use of fixed costs in conducting business. Fixed costs include: Operating costs (e.g., rent and de...
Thursday 13 April 2017

Absorption Cost

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Absorption cost takes account of all costs and allocates them to individual products or cost centers. Direct or variable costs Some c...
Wednesday 12 April 2017

Break-even charts

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In nearly all businesses, there is a close correlation between the level of turnover and the profit or loss. The managers should know th...

The uses of costing

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It costs time and money to produce costing information and it is only worth doing if the information is put to good use. The following ar...

Marginal Costing: Selling price > Variable or Direct cost ---> part of the Fixed cost is absorbed by the margin.

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Marginal costing is a useful way of emphasizing the marginal costs of production and services. This information is of great help in makin...

A basic understanding of the principles of costing is important in business management.

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Most non-financial managers instinctively know that costing is important. Unfortunately, it is probably also true that most non-financia...
Monday 10 April 2017

Do not overlook the value of marginal costing

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When times are tough there is likely to be pressure on sales and margins. In this situation, marginal costing could be very helpful. It...