Identifying costs related to late or non-payments - Revision history

wikademia>Wikademia at 21:57, 10 April 2009

2009-04-10T21:57:34Z

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	~~==Identifying Costs==~~
	Before presenting the types of costs associated with nonpayment, you should first consider how sales are tracked from a bookkeeping perspective and then consider how costs impact sales.		Before presenting the types of costs associated with nonpayment, you should first consider how sales are tracked from a bookkeeping perspective and then consider how costs impact sales.

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	[[Category:International business]]		[[Category:International business]]
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wikademia>Wikademia at 17:50, 8 April 2009

2009-04-08T17:50:58Z

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	~~{{TF3.3}}~~


	==Identifying Costs==		==Identifying Costs==
	Before presenting the types of costs associated with nonpayment, you should first consider how sales are tracked from a bookkeeping perspective and then consider how costs impact sales.		Before presenting the types of costs associated with nonpayment, you should first consider how sales are tracked from a bookkeeping perspective and then consider how costs impact sales.
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	<div style="float:right;">[[Effects of Late or Non-payments/Impact of Nonpayment\|Prev]] \| [[Effects of Late or Non-payments/Bad Debt Value\|Next]]		<div style="float:right;">[[Effects of Late or Non-payments/Impact of Nonpayment\|Prev]] \| [[Effects of Late or Non-payments/Bad Debt Value\|Next]]
	[[Category:International ~~Business~~]]
			[[Category:International business]]

wikademia>Wikademia: moved Effects of Late or Non-payments/Identifying Costs to Identifying costs related to late or non-payments

2009-04-08T17:50:32Z

moved Effects of Late or Non-payments/Identifying Costs to Identifying costs related to late or non-payments

← Older revision	Revision as of 17:50, 8 April 2009
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wikademia>Wikademia: 2 revisions

2009-04-08T04:17:53Z

2 revisions

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24.11.195.94 at 12:49, 28 September 2007

2007-09-28T12:49:51Z

← Older revision		Revision as of 12:49, 28 September 2007
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	Keeping the sales and costs together makes it difficult to identify the true profit of domestic sales versus international sales. Knowing the costs of international sales can impact marketing strategies, pricing strategies, and credit decisions.		Keeping the sales and costs together makes it difficult to identify the true profit of domestic sales versus international sales. Knowing the costs of international sales can impact marketing strategies, pricing strategies, and credit decisions.

			<div style="float:right;">[[Effects of Late or Non-payments/Impact of Nonpayment\|Prev]] \| [[Effects of Late or Non-payments/Bad Debt Value\|Next]]
	[[Category:International Business]]		[[Category:International Business]]

wikademia>MSUglobal: New page: {{TF3.3}} ==Identifying Costs== Before presenting the types of costs associated with nonpayment, you should first consider how sales are tracked from a bookkeeping perspective and then c...

2007-09-25T19:11:31Z

New page: {{TF3.3}} ==Identifying Costs== Before presenting the types of costs associated with nonpayment, you should first consider how sales are tracked from a bookkeeping perspective and then c...

New page

{{TF3.3}}

==Identifying Costs==
Before presenting the types of costs associated with nonpayment, you should first consider how sales are tracked from a bookkeeping perspective and then consider how costs impact sales.

Some companies do not separate exports sales from domestic sales in their accounting systems. To them, a sale is a sale. However, international sales, as you are learning, sometimes carry costs and risks that domestic sales do not. So what happens if domestic and international sales are combined?

Imagine for a moment that Company A sells its products for $100 each. Costs for selling domestically are $92 for each unit. Costs for selling internationally are $94 for each unit (due to a shipping cost differential). It may seem easy enough to track the differences, but a problem could occur when you add the method of payment and potential risk of nonpayment because variable costs (costs that vary from sale to sale) change. Assume, for example, that domestic sales are paid via 25% cash and 75% credit. The chances of losing profits are less than if all sales were credit. If the domestic credit tends to be low risk of nonpayment, costs of nonpayment may not be a large factor. However, international sales would probably be all credit. Add to that an increased risk of nonpayment and the profit associated with international sales could be significantly impacted.

Keeping the sales and costs together makes it difficult to identify the true profit of domestic sales versus international sales. Knowing the costs of international sales can impact marketing strategies, pricing strategies, and credit decisions.

[[Category:International Business]]