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A Sales Maximisation objective aims at increasing the cash value turnover/Sales Income/Revenue. Costs and expenses are not taken into account.
Profit maximisation seeks to increase the bottom-line profit, regardless of sales or other considerations. Profit = sales less costs. If sales reduce, but if costs reduce by a greater amount, profit will increase. If sales are less in such a scenario, the work required to achieve sales may be less, so more profit is being made with less effort, which would be a good indicator of the organisation's efficiency and ability to trade successfully despite business challenges.
Profits can also be increased by maintaining at costs at their present level, and increasing the selling price. Assuming that the volume of sales does not decrease, bottom-line profits will increase.
Sales maximisation can be an valid objective if the sole aim is to increase market share or other related reasons. However, Sales Maximisation accompanied by ever-decreasing profits cannot be sustained indefinitely.
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What are the similarities between profit maximisation objectives and wealth maximisation objectives?
Both profit maximization and wealth maximization have the objective of increasing the net worth.
What are the policies on profit and maximization in manegerial economics?
WHAT IS THE PROFIT MAXIMISATION?
Why Profit Maximisation is the main objective of a firm Discuss this statement with the help of an example?
1. Profit Maximisation is the main objective of a firm" Discuss this statement with the help of an example.
What circumstances is the sum of variable production and selling costs the appropriate minimum price for special orders?
It is the appropriate sum when there is significant competition or optimisation decisions are not being made with respect to profit maximisation but production maximisation.
What is business prime objectives?
To make a profit
What are the similarities between profit maximisation objectives and wealth maximisation objectives?
Both profit maximization and wealth maximization have the objective of increasing the net worth.
What are the objectives of a modern business firm?
Profit maximization sales maximisation growth maximisation utility maximisation satisfying behavior long run survival welfare objectives
Wealth maximization is a function of share price maximization discuss?
the difference between Profit maximisation and share price maximisation
What are the policies on profit and maximization in manegerial economics?
WHAT IS THE PROFIT MAXIMISATION?
Why Profit Maximisation is the main objective of a firm Discuss this statement with the help of an example?
1. Profit Maximisation is the main objective of a firm" Discuss this statement with the help of an example.
What are the differences between a nonprofit and a not-for-profit?
No difference.
What makes some companies more profitable than others and what are the similarities and differences between profit and profitability?
what are the similarities and differences between profit and profitability?
What are the differences between gross profit and full cost profit?
gross profit is taken from the profit and loss account
Analyze two other alternative to profit maximisation as a goal of the firm?
is this in relation to energy markets?
What are the differences between cost volume profit analysis and break even profit analysis?
there no difference between break even profit analysis and cost volume profit analysis
Why is wealth maximisation superoir to other objectives of business firm?
Every business including Not for profit need to make money to function. The financial income is always the first thing noted as without the income all other aspect will eventually cease.
Explain the importance of profit maximisation for a public limited company?
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