User:Jukeboksi/Sandbox2

Key terminology for short-term business decisions:
 * In economics and business decision-making, a sunk cost is a retrospective (past) cost that has already been incurred and cannot be recovered. ( Wikipedia )
 * incremental analysis
 * In microeconomic theory, the opportunity cost of a choice is the value of the best alternative forgone, in a situation in which a choice needs to be made between several mutually exclusive alternatives given limited resources.
 * avoidable cost <- read this
 * price taker vs. price setter
 * Pricing is the process of determining what a company will receive in exchange for its product. Pricing factors are manufacturing cost, market place, competition, market condition, brand, and quality of product. Pricing is also a key variable in microeconomic price allocation theory. ( Wikipedia )
 * pricing and costing
 * target costing is a pricing method used by firms. ... A target cost is the maximum amount of cost that can be incurred on a product and with it the firm can still earn the required profit margin from that product at a particular selling price. ( Wikipedia )
 * cost-plus pricing is a pricing strategy companies use to maximize their rates of return. Firms may accomplish their objective of profit maximization by increasing their production until marginal revenue equals marginal cost and then charging a price which is determined by the demand curve. ( Wikipedia )
 * The MR == MC assumption is very unecological often. Assumes we are not sharing a limited planet ( jubo-jubo )


 * Return on investment (%) = (Net profit / Investment) × 100 ( Wikipedia )
 * Return on investment (ROI) is the concept of an investment of some resource yielding a benefit to the investor. A high ROI means the investment gains compare favorably to investment cost. As a performance measure, ROI is used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments. ( Wikipedia )


 * product mix considerations
 * Outsourcing (make or buy decision) is the contracting out of a business process to a third-party. ( Wikipedia )
 * The term "outsourcing" became popular in the United States near the turn of the 21st century. ( Wikipedia )
 * Outsourcing sometimes involves transferring employees and assets from one firm to another, but not always. ( Wikipedia )


 * Total absorption costing (TAC) is a method of Accounting cost which entails the full cost of manufacturing or providing a service.
 * TAC includes not just the costs of materials and labour, but also of all manufacturing overheads (whether ‘fixed’ or ‘variable’).
 * The cost of each cost center can be direct or indirect cost. The direct cost can be easily identified with individual cost centers. whereas the indirect cost cant be easily identified with the cost center.
 * The distribution of overhead among the departments is called apportionment. ( Wikipedia )