cost management

Things to Consider When Pricing Products

in Business Management
Product Pricing

Effective Product Pricing Strategy for Business Owners

Tips for small business owners to determine the price of a new product.

Effective product pricing concerns six factors.

Establishing an effective pricing strategy for new products is an art. Reaching that delicate balance between consumer demand and product value generally takes a great deal of research and insight especially when trying to price products in a competitive marketplace. Keep Reading

Cost Management Requires a Total Approach

in Business Management
Cost Management

Cost Analysis and Accounting are not Enough for Managing Costs

While accounting systems provide information on existing costs, managing them involves a careful look at the lifetime costs of a product from development to retirement.

Cost management is not an accounting issue. Rather it is more of a strategic issue concerned with what can be described as portfolio selection. The portfolio of products, customers, assets, methods and systems all must be selected by considering alternative opportunities.

For example, unprofitable products are eliminated, alternative production processes and materials are evaluated and profitable customers get focused attention. Keep Reading

Ten Business Mistakes that Kill Companies

in Business Management
Business Mistake

About half of all small businesses fail within the first five years

Even successful small business owners can make mistakes, and some of them will kill a company. Here are ten of the most common errors.

The Department of Commerce tells us that about half of all new employer firms survive five years. The half that don’t survive often fail because of business mistakes caused by their owners.

Each of the errors discussed here has been the cause of business failures, but thankfully there are ways to avoid every one of them. Keep Reading

Cost Accounting has got Transformed to Managerial Accounting

in Business Management
Cost Accounting

Businesses improve profitability by increasing revenue through higher selling prices or sales volumes, and lowering operating and overhead costs through cost management.

An understanding of cost behavior not only helps cost management as such but also supports strategic and tactical decision-making across the entire spectrum of business operations.

Projects, processes and regular operations can all benefit from cost management, leading to overall business performance improvement. Keep Reading

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