Cost profit margin learning curve Prepared by Celeste

Cost, profit margin, learning curve Prepared by: Celeste Ng Date: May, 2016 Source: As given on each slide

Profit margin • “Profit margins are expressed as a percentage and, in effect, measure how much out of every dollar of sales a company actually keeps in earnings. A 20% profit margin, then, means the company has a net income of $0. 20 for each dollar of total revenue earned. ” --Source: http: //www. investopedia. com/terms/p/profit margin. asp Prepared by: Celeste Ng 2016

Source: http: //www. ibbusinessandmanagement. com/43 product. html Prepared by: Celeste Ng 2016

Life cycle cost • --- Source: http: //www. slideshare. net/soblo/life-cycle-costing-42535022 Prepared by: Celeste Ng 2016

Tangible and Intangible Cost • “Tangible costs are often associated with items that also have related intangible costs. An intangible cost consists of a subjective value placed on a circumstance or event in an attempt to quantify its impact. For example, let's examine the costs associated with a customer who has received broken merchandise. The company will usually refund the value of the product to the customer, paying a tangible cost. If the customer is still upset over the event, he or she may complain about the poor service to friends. The potential loss of sales, resulting from the friends hearing the complaints, consists of an intangible cost relating to the broken merchandise. “ • ----- Source: http: //www. investopedia. com/terms/t/tangible-cost. asp Read more: Tangible Cost Definition | Investopedia http: //www. investopedia. com/terms/t/tangible-cost. asp#ixzz 488 CNVGhw Prepared by: Celeste Ng 2016

Example: “Setup a brand page on Facebook” Project – Tangible Cost n Benefit Tangible costs (or benefits) are costs (or benefits) those can be easily quantified in terms of monetary value. • Tangible costs – Before & After (project): Labor (graphic designer, content designer, page-manager, product acquisition manager), material (software), physical goods (product sold), taxes, land (office) • Tangible benefits – After: Increased sales (online, anywhere and anytime), cost reduction (advertisement) Prepared by: Celeste Ng 2016

Example: “Setup a brand page on Facebook” Project – Intangible Cost n Benefit • Intangible costs – Before: opportunity cost (disruption to what you are doing originally) – After: Interactions with fans, page-monitoring • Intangible benefits – Brand awareness, e-WOM Prepared by: Celeste Ng 2016

Learning curve ----- Source: http: //www. cimaglobal. com/Documents/Imported. Documents/fm_apr il_05_p 44 -47. pdf Prepared by: Celeste Ng 2016

Parametric model ----- Source: https: //en. wikipedia. org/wiki/COCOMO Prepared by: Celeste Ng 2016