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Chap12: objectives PROFITABILITY (Why seek profit (which is not paid…
Chap12: objectives PROFITABILITY
Definition= Revenue -cost
Why seek profit
meaning
owership
which is not paid
update plant and equipments
future contingencies
acquire asset
long term borrowing
way make proft
high quality costly materials
low waste rework scrap
long run cheaper
than inferior material
lowest cost
Long term benifit
partnership
technology shaharing
JIT
collaboration
cost reduction
process improveement
non price advantages
measurability
saving on material
inventory
contracting and transactional cost
process improvement
inventory management
Nego
e procure tools
cost reduction retained in business = bottom line improvement