From the course: Business Fundamentals for Customer Success Managers
Join today to access over 22,600 courses taught by industry experts or purchase this course individually.
How expenditure and profits are calculated
From the course: Business Fundamentals for Customer Success Managers
How expenditure and profits are calculated
(uplifting music) - [Instructor] In order to discuss costs and profitability, we'll use two examples; the example of the automobile manufacturer and the example of the accountancy firm. The automobile manufacturer has two types of cost to consider. Firstly, it has the costs of the raw materials, parts, energy consumption used actually to make each vehicle and commission given to the salesperson for the sale of each vehicle. These are usually referred to as direct costs, since they can be directly related to each particular product or service being sold and are also sometimes referred to as COGS or cost of goods sold. Direct costs go up and down, dependent upon the number of products or services supplied. So for example, if the manufacturer makes 20,000 automobiles it will need to purchase 20,000 car stereos to fit inside them. 20,000 cabin heaters, 80,000 shock absorbers, one for each wheel and so on. Second, it…
Download courses and learn on the go
Watch courses on your mobile device without an internet connection. Download courses using your iOS or Android LinkedIn Learning app.
Contents
-
-
Overview of how businesses generate value2m 46s
-
CSMs and business awareness5m 34s
-
(Locked)
Why businesses exist6m 4s
-
(Locked)
How businesses create value for owners3m 55s
-
(Locked)
Who else businesses create value for5m 48s
-
(Locked)
How expenditure and profits are calculated5m 55s
-
(Locked)
Customer segments and value propositions5m 48s
-
-