Cost of sales is another term for cost of goods sold (COGS). It is a metric used to figure out the cost incurred in producing the goods or services for the end-user to buy.
A sunk cost is money that has already been spent and cannot be recovered. In business, the axiom that one has to "spend money to make money" is reflected in the phenomenon of sunk cost. A sunk cost differs from future costs that a business may face, such as decisions about inventory p...
A sunk cost is money that has already been spent and cannot be recovered. In business, the axiom that one has to "spend money to make money" is reflected in the phenomenon of sunk cost. A sunk cost differs from future costs that a business may face, such as decisions about inventory p...
Definition:A selling expense is a cost incurred to promote and market products to customers. These costs can include anything from advertising campaigns and store displays to delivering goods to customers. Any expense that is associated with selling a good or making a sale is considered a selling...
Tools and Resources for Setting Selling Prices Knowing the theory of pricing is crucial, but let’s look at some tools to aid your decision-making process: Pricing Calculators Brief Mention:Various online pricing calculators are available (many free!). These often take basic inputs like cost and...
Value selling Value selling is slightly different in that it focuses on helping prospects solve problems while delivering positive economic and resource impact. That impact can be seen in different ways from cost and time savings to competitive advantage and risk mitigation....
What Is Selling, General & Administrative Expense (SG&A)? SG&A expenses comprise all the day-to-day operating costs of running a business that aren’t related to producing a good or service. This includes a wide range of expenses, such as rent, advertising and marketing, and salaries of ...
Why is cost of goods sold important? It’s because you’ll deduct this number from your revenue to calculate your gross profit. Often expressed as a percentage, your gross margin is a measure of your company’s profitability, and it’s an important figure when looking for investment. But ...
Upselling is a sales strategy that aims to encourage customers to purchase higher-priced items or add-ons to their existing purchase. The idea is to increase the average transaction value by offering customers something that complements or enhances what
What Is a Unit Cost? The unit cost is the total amount of money spent on producing, storing, and selling a single unit of of a product or service. Why Is Unit Cost Important? If you don’t know the unit cost of a company’s product, you can’t price it properly in order to mak...