Improving Profits Flashcards
1
Q
ways to improve profits
A
1) reduce cost of production
2)increase prices
3) improve business efficiency
4) use capacity
5) reduce the number of substandard products
2
Q
how to reduce costs of production
A
use cheaper supplies/ reduce amount of employees
3
Q
How to improve business efficiency
A
- increase productivity, decrease unit cost
4
Q
How to use capacity more
A
Lower price to sell extra production
Produce to a maximum amount
5
Q
Difficulties in improving cash flow and profit
A
- identifying there is a problem- depends on the effectiveness of financial management
- researching the cause of the problem- depends on effectiveness of primary research
