Transopticoirididimis

When making a decision about a long term investment we need to apply a discount rate to reflect the changing value of money over time.

This principle applies also in the context of awarding sums of compensation as in this article. The money required to provide a return of a certain level has to take in to account a discount rate.

here we see a change in the discount rate required to ensure that compensation is sufficient. Essentially it means a need for larger awards.

https://www.out-law.com/en/articles/2017/march/uk-and-scottish-governments-begin-review-of-discount-rate-calculation-method/

We tend to look at the BS in the context of measuring performance against a company’s objectives, but it can be used for a Department or even an individual (as here).

An interesting comment in the comments space below too, about some of the practical issues.

https://www.ifa.com.au/news/17762-avoid-conflicted-remuneration-with-scorecard-says-consultant

Discussion of using Pareto Analysis to help a company develop. It uses the usal 80:20 ‘rule’ as if it an actual rule rather than a common occurrence. But it is still interesting on how the process can be used.

http://www.accountingweb.com/practice/clients/how-to-steer-clients-toward-profitable-growth

Target costing is all about keeping costs at a particular level so that profit margins can be maintained at a particular selling price.

This can be done through efficiency, redesign, automation, reduction in quality or sometimes reduction in quantity.

Usually when a company reduces the quantity of product it sells for the same price it gets away with it. for Toblerone, the new design and reduction in chocolate was a bit too obvious.

http://www.bbc.co.uk/news/uk-37904703

http://bbc.in/2gGbKIj

The author of this letter points out a common misconception about costs. The average cost of providing a service is not the same as the additional cost of providing one more. Written about the context of education costs in an American town, it has relevance anywhere where you can ‘add one more’ without increasing fixed costs.

“But currently our schools are way below capacity and adding new students would add virtually no additional costs. ”

http://www.eastoncourier.com/53463/letter-adding-new-students-would-bring-no-additional-costs/

The principles of Life Cycle Costing can be applied to projects too as a way of ensuring that the costs over the whole project can be considered. as here with a comparison of investments in sewerage etc.

http://finance.yahoo.com/news/sustainable-solutions-corporation-releases-comparative-130000086.html

We study pricing as if it is all about setting one price. The principles of dynamic pricing are essentially changing the price with demand almost continually to maximise contribution.

https://www.forbes.com/sites/nikkibaird/2017/04/18/dynamic-pricing-when-should-retailers-bother/#57828b3121be

Discussion in the context of hospitality in the Caribbean.

http://www.nationnews.com/nationnews/news/95481/cost-control-real

We learn to do it by hand because we are probably not going to have a computer in an exam. However, they are easy to do in Excel too.  As shown in this video.