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Definition
| Expenses that are tied to the sales of each unit |
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| People that are not tied directly to the cost of producing a unit - administration, sales people, and managers, for example. |
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| contribution margin less period costs. Put simply, it is what the product contribution towards profits. |
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Definition
| in the real world emergency loans do not exist. When you run out of cash you have " a Liquidity crisis", or simply "bankruptcy" on your hands |
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Definition
| Current Assets - Current Liability |
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| Current Assets / Current Liabilities = ( cash + A/R+Inventory) / (A/P +Current Debt) |
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| Working Capital / (sales/365) |
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Definition
| your ability to forecast demand, build adequate inventories to satisfy demand, and yet not accumulate excessive inventory |
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