¶ … variable and fixed costs?
There are plenty of differences between 'fixed costs', and 'variable costs'. While variable costs are those that can be varied according to the changes taking place, fixed costs are those costs of investment goods that are used by the firm or company, with the idea that it would only be through wearing them out by way of the production of goods or by services for sale that they can eventually be recovered, in the long-term. (Fixed and variable costs: William-King) This means that the basic lesson for all entrepreneurs is that all entrepreneurs generally have some basic fixed costs that must be paid, no matter how many products they would be offering for sale, while at the same time, variable costs change according to the number of products that are being offered for sale. It is through a learned process of identification and control of their costs that all entrepreneurs would be able to earn a basic profit for their company, and thereby earn success in their chosen field. If one example were to be taken, it can be said that one Alex runs a shoe store, and he would have to pay certain fixed costs, whether or not he sells twenty pairs, or two hundred pairs of shoes everyday. These costs would be, for example, mortgage payments, insurance, and so on. Alex would also have to pay his sales people, use raw material, use electricity, and maintain an inventory. (How Can Entrepreneurs Control Costs?)
All these costs would change every period of time, and these would then be the variable costs. Fixed costs must certainly be paid, and this is perhaps the reason that they are known as 'sunk costs', because they would be beyond anyone's control at various points of time during the running of the business. Therefore, while Alex may choose the number of sales people that he hires, he would not be able to choose the amount of rent that he has to pay every month. The best way, which almost all entrepreneurs use, is to increase their sales,...
The third controllable cost is storage and delivery, which depends on program scope independent of which professional educates the consumer. d. Unrecoverable expenses if the activity is not implemented include the cost of preventable traumatic head injuries borne by the total health care insurance consumer pool whether cyclists are insured or not; the direct ER costs attempting to prevent one traumatic head injury from becoming catastrophic (death); the foregone potential
Patents in the Pharmaceutical Industry Intellectual property theft through piracy and counterfeiting has risen dramatically over the last couple of decades. As a result, the level of activity of pirates and counterfeiters has increased, and so has the scale of organizations participating in the same. The pharmaceutical industry, which forms the basis of this text, has been widely affected; more than "90% of donor-funded HIV medicines" in the market today are
The market size for AAA Software based on PC usage can be estimated by the total number of new PC sales and the level of antivirus usage on them. The total PC usage during the corresponding year is shown in the figure. Source: http://www.etforecasts.com/products/ES_pcww1203.htm C3: Competitive Analysis- Describe your company's current competition. KEY DIFFERENTIATORS Registered/Head Office Czech Republic United States United States Slovak Republic United States Number of Users More than 150mn users NA NA NA NA Product Variants Home Users - Antivirus (Free, Pro and
Sand Dollar Boat Charters There are several different things that can pose barriers to entry into a new business. Some barriers to entry are government intervention (regulation, limits on entry), or naturally occurring barriers to entry such as high fixed costs, a steep knowledge curve or the structure of the industry (Investopedia, 2013). There are few barriers to entry in the boat rental industry. Startup costs are relatively low, and even the
Race, Class & Crime The confluence of race, class and crime is a hot topic nowadays. This is especially true when discussing events or topics of various types. Very or fairly specific examples of this would include the recent shooting of Mike Brown in Ferguson, MO and the subsequent non-indictment of the officer who shot him despite the fact that Brown was not armed and the ongoing discussion about how paying
Financial Statement Analysis In this particular essay, I undertake the financial analysis of five companies, all of which are set in the retail industry. Three of the companies, Tesco Plc, Sainsbury's and Wm Morrison Supermarkets plc are some of the largest food retailers in the United Kingdom. Ocado which is the fourth company is the largest online food retailer in the whole world and lastly Crawshaw Group PLC is also in
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