See Also: Predetermined Overhead Rate Activity Based Costing vs Traditional Costing Activity Based Cost Allocation Standard Cost Overhead Expense Reduction As a general precursor to Overhead expense reduction, Group Purchasing Organizations, Co-ops and Consortiums always lead to lower prices because they aggregate spends and create buying power. This may be true for smaller spends but
See Also: Supplier Power (one of Porter’s Five Forces) Signs a Company is in Trouble Problems When Experiencing Business Growth Threat of New Entrants Intensity of Rivalry Supplier Power Analysis When analyzing a given industry, all of the aforementioned factors regarding Porter a supplier power analysis may not apply. But some, if not many, certainly
See also: Supplier Power Analysis Porter’s Five Forces of Competition Threat of New Entrants Buyer Bargaining Power Threat of Substitutes Intensity of Rivalry Supplier Power Definition In Porter’s five forces, supplier power refers to the pressure suppliers can exert on businesses by raising prices, lowering quality, or reducing availability of their products. When analyzing supplier
See Also: Administration Expenses Outsource Definition Advantages of PEO Services for the Business Owner Sunk Costs Joint Costs Service Department Definition Many companies require support activities as well as core activities to produce their goods and/or services. Support services, or a service department, do not contribute directly to the production of goods or the providing
Product Life Cycle Definition A product life cycle, defined is the period from when a product goes through its initial specifications and research to the withdrawal of that product from the market. There are five product life cycle stages. Product Life Cycle Meaning The product cycle stages are as follows: Research and Development This is
See Also: Company Life Cycle Market Positioning Marking to Market Mining the Balance Sheet for Working Capital Inventory to Working Capital Make-or-Buy Business Decision Make-or-buy decisions arise in business when a company must decide whether to produce goods internally or to purchase them externally. This typically is an issue when a company has the ability
See Also: Due Diligence on Lenders Auditor Mergers and Acquisitions (M&A) Audit Committee Loan Agreement Due Diligence Definition The Due Diligence definition is an extensive qualitative and quantitative look at a company. It helps company leaders make the best informed business decision about a company. Furthermore, Due Diligence is often associated with audits, where it
See Also: Current Liabilities Balance Sheet Accounting Principles Accounting Concepts Subsequent Events Contingent Liability Definition A contingent liability, defined is an obligation that a company might or might not have to recognize. This is because the event(s) are uncertain. It is also necessary for future events to occur to determine whether or not the obligation
See Also: Accounts Receivable Turnover Days Payable Outstanding Financial Ratios Operating Cycle Analysis Accounts Payable Turnover Definition The accounts payable turnover ratio indicates how many times a company pays off its suppliers during an accounting period. It also measures how a company manages paying its own bills. A higher ratio is generally more favorable as
See Also: Account Reconciliation Accounts Payable Turnover Cost Volume Profit Definition Accounts Receivable Accounts Receivable Turnover Unearned Revenue Accounts Payable Definition The accounts payable definition is a current liability account on the balance sheet. The account represents the company’s short-term financial obligations to creditors and suppliers – goods and services the company has already received
Supplier Power Definition “In Porter’s five forces, supplier power refers to the pressure suppliers can exert on businesses by raising prices, lowering quality, or reducing availability of their products. When analyzing supplier power, the industry analysis is being conducted from the perspective of the industry firms. In this case, it is referred to as the
I was involved in a meeting with a prospect a few weeks ago who we will call Don. Don owns a manufacturing company which is presently experiencing a growth rate of thirty percent annually. The question we are looking at today is why don’t I have cash? Why Don’t I Have Cash? He is showing a
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