April 15 - Liquidity is the current cost you have to pay...

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SMM-Class Note: April 15, 2011. Frog Style, sitting in his room. The controller should not be a frog style. You should know 1. break even point and / contribution margin 2. You should also know pricing the product. 3. Decision about sunk cost 4. Special sales order. (Tailor makes the boat) the order comes with some adjustment. 5. General margin ration. 6. Liquidity concept. In marketing there are 2 basic and fundamental types of cost. 1. Order getting. Cost: (Promotional strategy- advertisement, trade fair, places the order through web.) Telephone cost, transportation, fixed cost, secretary, etc, cost of the building. 2. Order Filling.
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Unformatted text preview: Liquidity is the current cost you have to pay for Order Getting and Order Filling. Sink Sank Sunk. Sank Cost: Example, I have this building. My business is garment, lady tailors. I have to make decision as I can no longer sustain this business. I just turn it to grocery, the depreciation cost for this building you cant touch it or do anything about it. The lady will stop working and I will pay their retirement. Then all cost related with the garment business are gone, they are relevant cost. However the depreciation and rent are irrelevant cost, unavoidable, it is still there....
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