7 Things You Should Know About Investment And Making Money.

Those who make money and keep making it don’t pluck it from money trees. They understand the fact that idle money is like a stagnant pool of water that dries up when spendings are not matched to commensurate or excess volumes of inflow. Armed with this knowledge, rich people invest their money in ventures theyContinue reading “7 Things You Should Know About Investment And Making Money.”

Timing Differences Meaning, Example And Spreadsheet.

Often profits per the financial statements and profits on which tax is payable are quite different from each other. There are two reasons for this: The depreciation figure in the profit and loss account may be different by a wide margin from the tax authorities’ figure for ‘capital allowances’ (the way tax authorities’ calculate allowancesContinue reading “Timing Differences Meaning, Example And Spreadsheet.”

How Do You Create and Sustain A Competitive Advantage?

In most industries, success can only be achieved by finding the strategy that gives and sustains a competitive advantage. That would require controlling and exploiting competitive forces of barriers to entry, threats from substitutes, bargaining power of suppliers, industry rivalry and bargaining power of buyers. These forces determine profitability by influencing pricing, investment requirements andContinue reading “How Do You Create and Sustain A Competitive Advantage?”

What Is Effective Consumer Market Segmentation? 5 Bases And 4 Important Segmentation Variables.

A typical consumer market is made up of individuals and households that purchase goods and services for personal and household consumption. Every consumer market has buyers that differ in several ways that makes market segmentation necessary. Market segmentation is the conscious effort of dividing a total market into groups (or segments) of people who shareContinue reading “What Is Effective Consumer Market Segmentation? 5 Bases And 4 Important Segmentation Variables.”

Risk Management Technique: Advantages And Disadvantages Of Self-Insurance.

Individuals and businesses are familiar with the fact that risk and uncertainty are part of life. Techniques have been developed to manage risks associated with human existence. Risk management is the identification, assessment and economic control of risks that have the capacity to adversely affect assets and earning capacity of individuals and businesses. One ofContinue reading “Risk Management Technique: Advantages And Disadvantages Of Self-Insurance.”

How Do You Calculate Service Cost (Service Costing)?

The calculation of the cost of a service with similar service centers or functions and cost units that are an appropriate measure of the service provided is a form of Activity Based Costing (ABC). ABC identifies activitiies which cause costs (known as cost drivers) and puts costs into cost pools. ABC attempts to overcome problemsContinue reading “How Do You Calculate Service Cost (Service Costing)?”

Robert F. Engle On Risk-Taking.

“There are some risks we choose to take because the benefits from taking them exceed the possible costs. Optimal behavior takes risks that are worthwhile. This is the central paradigm of finance: we must take risks to achieve rewards, but not all risks are equally rewarded.” 2. “The advantage of knowing about risks is thatContinue reading “Robert F. Engle On Risk-Taking.”

Contract Costing – Characteristics And Calculations Of Progress Payments And Interim Profits (Spreadsheets).

Do you have a contract that has the following characteristics? Problems of cost control concerning pilferage, material usage, labor utilization and supervision, vandalism and sometimes losses. The scale and size of the site may be responsible for these problems, 2. Direct costs traceable to the contract are in high proportion. Such direct costs may includeContinue reading “Contract Costing – Characteristics And Calculations Of Progress Payments And Interim Profits (Spreadsheets).”

Why Is Successful Personal branding Necessary?

The answer to this question is the same as the answer to the question, ‘Why should you care about what people say about you as an entrepreneur?” You should because what people say about you and what they think of you influence the way they receive you and your business. In other words, they wouldContinue reading “Why Is Successful Personal branding Necessary?”

What Is Zero Based Budgeting? (Stages In Implementing And Advantages of ZBB)

A budget is a quantitative expression of a plan of action in advance of the period to which it relates. An effective budget should show what it would cost to enjoy desired benefits. The budget that clearly shows the relationship between cost and benefit is the Zero Based Budgeting (ZBB). What is ZBB? The ZBBContinue reading “What Is Zero Based Budgeting? (Stages In Implementing And Advantages of ZBB)”