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Business Analysis: Microsoft by Conrad Carlberg

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20. Pricing and Costing

Whether a business operates at a loss or makes a profit depends heavily on how much it costs to produce a product and how much the business can sell it for. Costs and prices are closely related, and this chapter goes into some detail about ways to analyze that relationship.

Although neither costs nor prices are under your complete control, you can exercise some influence on both. Many methods of cost control exist, from reducing the company’s payroll and lowering inventory levels to watching the travel and entertainment expenses.

Regarding prices, another difficulty ...

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