Price Formation

Written by konstantin otto c. botschkowski

Price Formation The price is formed atrepparttar market. Increasingrepparttar 151122 price, it lowersrepparttar 151123 sale volume. Increasingrepparttar 151124 publicity, it increasesrepparttar 151125 sale volume. Increasingrepparttar 151126 product quality [investing in design], it increasesrepparttar 151127 sale volume. In this model of tendencies we have variables: price, sale volume, publicity and product quality. Are missing variables; profit relative torepparttar 151128 sale amount, profit relative torepparttar 151129 employed capital and employed capital. As profit is here understood this variable under several focuses [sees below]. In this simple model, of tendencies, we have seven variables. Cost consists of: Production cost, bureaucratic costs, depreciation ofrepparttar 151130 project [design], insurance cost, commercial costs and transport cost. 01-00Production cost 01-01Material and components 01-02Labor 01-03Energy 01-04 Depreciation ofrepparttar 151131 industrial equipment 01-05 Rent ofrepparttar 151132 industrial space 01-06 Allotment Bureaucratic costs Territorial tax 01-07Insurance costs [business risk] Against sinister Against commercial risk 02-00 Depreciation ofrepparttar 151133 project [design] ofrepparttar 151134 product 03-00 Cost ofrepparttar 151135 transport Transport Insurance Taxes [trading] 04-00 Commercial costs Publicity Commissions 05-00 Profit consist in: 05-01 Direct taxes Excise ect... 05-02 Profit ofrepparttar 151136 company [gross] Operational profit Not operational profit [positive or negative] 06-00 Company profit income tax ******************************************************** Taxes Direct taxes Company income tax Employees Income tax Shareholders Income tax Tax built-inrepparttar 151137 expenses of consumption of

Tendencies of the Market

Written by konstantin otto c. botschkowski

Tendencies Of The Market The habits change. Formerly,repparttar tailor made clothes according torepparttar 151121 man's body. Todayrepparttar 151122 man forms [models] his body according torepparttar 151123 clothes pattern. Inrepparttar 151124 industrial productionrepparttar 151125 current is opposed. The standardized products multiply. The amount ofrepparttar 151126 standardized products andrepparttar 151127 amount of components of each product increases. Work of production planning is bulkier. The cost needs to be calculated with more accuracy. The periods also demand more accuracy. Ifrepparttar 151128 components of several production lines dispute same resourcesrepparttar 151129 periods should be calculated together

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