Are Private goods for new babies in family?

Are Private goods for new babies in family?

A private good is a product that must be purchased to be consumed, and its consumption by one individual prevents another individual from consuming it. Economists refer to private goods as rivalrous and excludable. A good is considered to be a private good if there is competition between individuals to obtain the good and if consuming the good prevents someone else from consuming it.

A family’s income position can define whether they can buy more private foods or not. If they can afford more private goods they should take more babies. 

Is “Net Profit “ profitable for enterprise?

Is “Net Profit “ profitable for enterprise?

 an enterprise may have spent far more in cash than was actually expensed by the accounting system. i.e. the company buys 100 x $10 reams of paper to take advantage of a supplier's discount but only uses 50 reams during the financial reporting period.  So while the company outlays $1,000 in cash, it only expenses (uses up) $500 in the financial reporting period.

Similarly in revenue, a company may make sales revenue of $1,000 for the same financial reporting period but if 50% of those sales were made to customers who used their company credit accounts (accounts receivable), then the company would only receive $500 in cash in this financial reporting period. The other $500 would be owed to the company by the customers who will pay the amount in a future reporting period.

Using this simple and rather restricted example, you can see how a company can make profit but still be cash-flow negative:

·         Profit for the period = Revenue ($1,000 total sales) less expenses ($500 used reams) = positive $500 profit

·         Cash-flow for the period = Cash in ($500 cash sales) less cash out ($1,000 cash paid for reams) = negative $500 cash-flow

Stock Clearance goods are good products?

Stock Clearance goods are good products?

Stock clearance is an activity by a company where ownership of products and materials move on to another legal entity. These products and materials in stock clearance will not form the basis of a company's key activities. As such they are often end of line stock, surplus stock, returned stock or bankrupt stock.

Most companies from time to time end up with surplus goods, liquidated goods and bankrupt stock. This can be a costly problem. Stock Clearance is a process by which companies free up valuable money and space. Reasons Leading to Stock Clearance Cancelled orders or late deliveries Closing Down of business Overproduction Returns Frustrated Stock (When importer or exporter decides to abandon the stock and leave it with the shipping company)

When customers are told that the reason for a price reduction is a stock clearance, they find this less attractive than other explanations such as a volume discount. This is because they suspect that the stock clearance indicates that the products are of poor quality.

Differences between opportunity cost and financial cost.

Differences between opportunity cost and financial cost.

Opportunity cost is the cost of a foregone alternative. If you chose one alternative over another, then the cost of choosing that alternative is an opportunity cost. The term opportunity cost is often used in finance and economics when trying to choose one investment, either financial or capital, over another.

The difference in return between an investment one makes and another that one chose not to make. This may occurin securities trading or in other decisions. For example, if a person has $10,000 to invest and must choose betweenStock A and Stock B, the opportunity cost is the difference in their returns. If that person invested $10,000 in Stock Aand received a 5% return while Stock B makes a 7% return, the opportunity cost is 2%. One way of conceptualizingopportunity cost is as the amount of money one could have made by making a different investment decision.Importantly, opportunity cost is not a type of risk because there is not a chance of actual loss.

The Financing Cost (FC), also known as the Cost of Finances (COF), is the cost and interest and other charges involved in the borrowing of money to build or purchase assets. The total expenses associated with securing finance for a project or business arrangement.