Fundamentals of Cost And Profit Calculation

Cover Fundamentals of Cost And Profit Calculation
Fundamentals of Cost And Profit Calculation
Robert S Robert Scudder Denham
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Cash in bank for use of the business.
These items cannot be added together and a blanket charge made of the mass. Each must be considered in relation to its employ- ment in service to the customers, so that the man who buys the product of hand tools will not pay the interest on investment in expen- sive machine equipment.
54 Economic Expenses Good Will is another item that seems, heretofore, to have escaped the consideration of thinking men. The term, as commonly used, seems to refer to the for
...ce of habit in causing people with purchasing power to con- tinue to patronize a concern after it has changed ownership.
This type of so-called "good will" is of doubtful value. Notwithstanding the fact that the man who has a store or other business for sale dilates largely on the value of the good will that is included in the offer, it is rare in- deed that the new owner profits much by rea- son of "force of habit. " Genuine good will is rarely transferable in total. The man who gains by it is the man who joins an organization which has already established a valuable good will.


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