When will you break even?

It is critically important for you to properly use quality cost information when making basic decisions about your business, such as pricing your goods and planning your sales volume.  Over the past few posts, I’ve explained how to determine fixed costs, variable costs, and contribution margin.  If you haven’t already done so, I encourage you to […]
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The Accounting Equation: Assets = Liabilities + Owners’ Equity

Your business is built on the accounting equation: Assets = Liabilities + Owners’ Equity Assets are what your business owns.  Liabilities are what your business owes.  The difference between these what you – the owner – actually own: owner’s equity. Suppose your business has $100,000 in assets and $30,000 in liabilities.  Then $70,000 of your […]
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