Recent Articles

Throughput

A business concept based on the principle of maximizing product or service delivery over a given period of time. Ideally suited to maximize revenues per the least amount of associated cost thus maximizing profit for the business operation.

Mixed Costs

12/16/2014

Mixed costs are a more advanced business concept.  Mixed costs refer to a combination of both a fixed and variable component.  A common error made by most small business entrepreneurs is the misapplication of the formula.  Many small business [...]

Cost Drivers in Small Business

10/19/2014

The textbook answer defines cost drivers as those factors that determine the overall cost of operations.  As an example, in manufacturing the cost drivers may be processing time or number of steps to produce the product.  In service, the cost [...]

Throughput – Business Definition and Identification

08/20/2013

When a business can maximize the product or service delivered within a given period of time, it has reached maximum throughput.  This is the basis of maximizing earnings and therefore profits for a company.  This article will examine the [...]

Operating Control Reports in Business

02/16/2013

A part of any information feedback loop is the operating control reports in business.  Depending on the nature and financial impact involved, these reports can be daily (Daily Operating Controls or DOC), weekly (Weekly Operating Controls or WOC) [...]

Find the Bottleneck

01/05/2013

In every business no matter production or service, there exists a bottleneck.  Your job as the owner or manager is to find it and fix the problem.  Once this one is found and resolved; move onto the next one.  There is always a bottleneck to find [...]

A Story About Great Production

12/12/2012

When I started out in accounting I had a job as a controller at a restoration contractor.  They would provide emergency mitigation for water damage jobs, mostly residential damage.  Every now and then we would get a call for a larger commercial [...]