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If the price of a product is increased or decreased, this has an impact on demand. The price elasticity of demand indicates how strong this impact is. It shows whether the demand for a product or service is elastic (fluctuating) or inelastic (stable) when the price changes. We…
Which products should your company focus on, and which are economically unviable? The contribution margin provides answers to this crucial question and allows you to draw conclusions about your company’s profit or loss. An accurate calculation of contribution margins is crucial…
When do you get paid maternity leave, if at all? Does parental leave affect your vacation entitlement? Many employees are concerned about these questions when expecting a child. Paid maternity leave in the USA remains a controversial topic for many, but knowing what you could be…
Do you want to bring a new product onto the market or offer a service that’s in demand? Then you first have to calculate the sales price. Doing this involves many factors. All conceivable costs as well as your profit margin must be incorporated into the price calculation. What…
To accurately assess a company and compare it with others, suitable key figures are essential. While year-end profit may seem like a straightforward metric, it isn’t always the best fit for every situation. Business analysts and economists often rely on alternative benchmarks.…
An investment is only a good investment when it is profitable. You can determine the return on invested capital by utilizing – among other methods – return on investment (ROI), one of the core indicators for business administration. We’ll explain the meaning of ROI, how it stands…
In contrast to direct costs, overheads such as factory rental costs cannot be directly assigned to a product or service. Instead, you must calculate the overhead rate to determine the appropriate percentage of overhead costs and, subsequently, the total expenses which result from…
When is product placement stealth marketing? You should maybe ask yourself this question if you promote products online in YouTube videos or social media. The FTC are consistently reviewing what is permitted in stealth marketing strategies, and what isn’t. Read on to find out…
Social responsibility is playing an increasingly important role for companies in aligning their activities with regard to fair working conditions and sustainable practices among others. The international ISO 26000 standard compiles examples across seven categories and shows…
Society is moving more and more in the direction of sustainability and social responsibility, and this doesn’t stop when it comes to the stock market. Environmental, Social, Governance (ESG) criteria have established themselves as a way to assess the ethical commitments of…