In the business( how is costs important and why is costs important.?)?

Question

plz plz give me good informaction about the.

thank you.

Answer 1

In order for a business to be profitable all variables have to be accounted for ie gas, electric, rent as well as labour costs.  Selling price, or cost of service, minus costs equals profit.  If the costs are the same as, or higher than, the selling price then profit does not exist.

Answer 2

the cost that any business has is extremely important.

for instant say you have a shop

firstly you have rent or mortgage plus business rates +electric=accountancy+phone+water rates etc and wages if you employ people and national insurance for them as well as your self employed stamp

so you buy from your wholesalers/manufactures etc at cost price. you then sell at whatever profit margin you want+vat which you have to give to customs and excise each quarter(approx 15% of your turnover)

at the end of your tax year your turnover less the vat then take away the costs of the goods that you have purchased . that leaves you with  your gross profit .

from this take away all your expenses that have added up throughout  the year. this then leaves you with your net profit which is then what you have to pay tax on

hope this helps and is what you were asking for

Answer 3

The costs are important because this enables the business run successfully and profitably. I hope this helps.

Answer 4

costs are important because you need to:

1 know what they

2 know how much each one is

3 determine your minimum price i.e. one that is cost based and covers your costs so you are not left out of pocket.

4 determine your margins on the 'going rate' in your industry.