It’s easy to think that your cost to your company is your salary—but it’s actually much more. Learn how to calculate your cost, and by extension, what people in general cost a company.
- Company financial statements…tell an important story about how a company is performing.…It's all about revenue minus expenses.…If revenue's high and expenses are low,…then the bottom line of the income statement…will show that the company made a profit.…And that'll make everyone happy.…When profits jump, investors cheer.…But expenses are no less important.…Even if they don't always grab the headlines.…When times are good, companies need to make sure…that expenses don't eat up a big chunk of revenue.…But when times are tough, companies need to cut costs…to make up for lost revenue.…
And often, this comes in the form of layoffs,…which brings us to you, the employee.…You are a cost to your company.…You appear in company income statements as a expense.…And that's not all,…consider your benefits, health insurance, travel expenses,…and retirement plan.…Even overhead, like electricity, and office space…are resources that add to the cost…of keeping you on the employer's roster.…So it's important that you understand…the full price tag of your job.…
- Explain how understanding your company’s finances will help you as an employee.
- Identify how you can help drive revenue if you do not work in sales.
- List the key things to look for when setting terms with suppliers.
- State why it is important to understand key accounting concepts and success measures.
- Explain what an income statement can tell you.