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Ideal capacity advice

Business is faced with particular challenges with safeguarding competitiveness, while presenting high quality goods or services in connection with effective performance and competitive costing.

Cost accounting has a central role in this. Cost accounting shows recording and accounting of business’ performance. The main purpose of modern cost accounting is to provide a decision-making basis for top management.

The following may serve as an example of a decision-making basis

Calculated cost accounting offers a basis for the business to determine prices.

Controlling is another important point for operational procedures, since it is an instrument for managing a business and dealing with possible future development.

Central part of an extensive controlling system is to have profit budgeting and finance plans.

Even the smallest enterprise needs a minimum of operational targets, such as:  turnover, costs, measures safeguarding liquidity and number of customers. Small service providers should also ask themselves which of their services provides best profits – and which have ended up with lots of expense and little else.

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