Profit Maximization

Costing Traps (Part 3)

Is the highest margin product always the best? Discover why maximizing Contribution Margin can hurt profits. A Theory of Constraints guide to optimal Product Mix.

04.03.2018Tags: Bottleneck Management, Business Management, Contribution Margin, Eliyahu Goldratt, Financial analysis, Financial Planning, Managerial Accounting, Operational Expenses, Product Mix Optimization, Profit Maximization, Theory of Constraints, Throughput Accounting, Variable Costing

Costing Traps (Part 2)

Using Weighted Average Cost (WAC) for decisions can kill your profit. A real-world case study showing why separating variable costs is crucial for sales planning.

04.01.2018Tags: Cost Allocation, Costing Traps, Decision Making, Financial analysis, Inventory Management, Managerial Accounting, Marginal Analysis, Profit Maximization, Variable Costing, Weighted Average Cost

Navigation menu

Featured
Business Strategy & Development
Corporate Finance & Capital Structure
Financial Analysis & Planning
Financial Reporting
International Financial Management
Investments
Risk Management
Theory of Constraints
Working Capital Management

Tags

Absorption Costing (2) Bottleneck Management (2) Business Management (9) Capital Budgeting (1) Cash Management (1) Competitive Advantage (1) Contribution Margin (3) Corporate Culture (3) Cost Allocation (1) Cost Analysis (1) Costing Traps (4) Critical Thinking (3) Decision Making (1) Eliyahu Goldratt (2) ESG (1) Financial analysis (9) Financial Planning (5) Idle Capacity (1) IFRS (1) Inventory Management (2) Investment Analysis (2) Investment Appraisal (1) Management (2) Managerial Accounting (7) Manufacturing Efficiency (1) Manufacturing Finance (1) Marginal Analysis (1) MIRR (1) Net Present Value (1) NPV vs IRR (1) Operational Expenses (1) Pricing Strategy (1) Product Mix Optimization (2) Profit Maximization (2) Project Management (2) Relevant Costs (1) Resource-Based View (RBV) (1) Strategic Planning (4) Strategic Thinking (2) Theory of Constraints (2) Throughput Accounting (2) TOC (1) Variable Costing (6) VRIO Analysis (1) Weighted Average Cost (1)

Scroll to Top