The most popular and traditional pricing strategy in Moldova is price setting based on Total Cost. Since resources were spent on manufacturing, the producer considers that price should include incurred costs plus a standard profit margin. The traditional pricing approach consists of adding a standard fixed extra charge (e.g. +20% + 25%), determined in accordance […]
Product Portfolio Optimization (PPO) includes the following elements: — Determination of the rational composition of the product portfolio; — Analysis of customers demand for individual products; — Consideration of limits on production capacity, working capital, and customer demand;
The Cost of Goods Sold account, found on the Income Statement, indicates the costs associated with the quantity of units sold during the period. The Balance Sheet account Inventory represents the costs associated with the quantity of unsold units at the end of a period.
The Cost-Volume-Profit analysis is a tool to visualize relationships between revenue, costs, and income. It is the central element of the Variable Costing Model. The Cost-Volume-Profit Chart demonstrates the relationship between Volume and Costs, and therefore, Income.
Costs should be divided into two basic categories: — Fixed or Variable — depending on whether the costs change with variations in production volume;
Cost Management means (1) knowledge of where, when and what company resources are used, (2) forecast of where, for what and what amount of additional financial resources are necessary, and (3) ability to ensure the highest possible efficiency level of resource use. Cost Management is the ability to save resources and maximize their efficiency.
Accounts Receivable Turnover Ratio The Accounts Receivable Turnover Ratio indicates how many times, on average, the receivables revolve, that is, are generated and collected during the year. The receivables turnover ratio is computed as follows:
Working Capital — the most significant indicator of the Short-Term Liquidity, which is the amount of assets invested by the company in its own current operations during each operations cycle. The quantity of Working Capital reflects the share of current assets belonging to the enterprise, and at the same time it expresses the long-term financial […]
The picture below shows the technology of integration of «Key Indicators» software with operational systems.
As an environment for development and a meta-level for data storage Microsoft Access 2000 was used. Using internal MS Access abilities to create links with tables from almost any DB, we established links with tables from the Key Indicators data warehouse and with tables designated for export of data on average price per product from […]
