Cost of making a product or providing a service: establishing selling price , product profitability analysis for
Question:
✓ Cost of making a product or providing a service: establishing selling price , product profitability analysis for product mix decisions , cost control
✓ Costs and benefits of different possible courses of action : making short term decisions about the most profitable use of existing resources
✓ Levels of sales turnover necessary to cover full costs and prevent losses:profit planning
✓ Comparison of budgeted and and actual costs and revenues: budgetary control
✓ Inventory levels and time taken to receive payment from bebtors , time taken to pay creditors: working capital management
✓ Profitability of business segments : performance evaluation
✓ Customer profitability: identification and management of key accounts.
Explain
Principles of Corporate Finance
ISBN: 978-0072869460
7th edition
Authors: Richard A. Brealey, Stewart C. Myers