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- Product costs
- Payroll
- Labor
Cost Management and Profitability
- Keeping product costs down is hard.
- Legislation can increase payroll costs unexpectedly.
- Higher labor costs make workers better off but can reduce profits and jobs.
- Effective cost management and budgeting are crucial to achieving profitability.
- For many businesses, employee salaries and benefits often represent the substantial cost.
- Choosing no-code platforms to develop apps reduces hiring costs.
Key Cost Drivers
- Together with revenue you can estimate profitability.
- Look at key resources and activities to identify the biggest cost drivers.
- Fixed costs remain equal, variables costs change with production.
- Individuals and departments can control some but not all costs.
Business Start-up Costs by Country
- The UAE has the highest business start-up costs.
- Rwanda has no start-up fees for two years.
- Congo is least affordable for starting a business.
Other Information
- Housing and transportation comprised 26% and 13% of people’s take-home pay.
- Small business owners spend an average of $40,000 in their first year.