Fundamentals of Cost and Profit Calculation; A Vigorous Discussion of the Vital Elements of Business

This historic book may have numerous typos, missing text or index. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. 1918. Not illustrated. Excerpt: ... CHAPTER SIX SELLING PRICES AND PROFITS The object of all commercial and industrial activity is profit. In fact it might be said that the object of all human effort is profit. The first statement refers to the reward of industry, money; while the second, refers to various types of reward, such as the comforts of life, the good will and friendship of neighbors, and self-respect as well as financial reward. This chapter deals with the reward of industry and commerce-profit, as expressed in terms of money. The legitimate reward of business is profit. In fact, commercial activity that is unprofitable is not business; it is folly. The man who is responsible for unprofitable conditions of business is a menace to the community and to the state. He places in jeopardy the capital and income of the stockholder who has entrusted to him the profitable use of his money; he destroys the basis of credit and adds to the risk of the creditor whose confidence he abuses; he injures the business of his competitor who is striving to conduct his business on sound principles; he weakens the support of the family that loves and depends upon him; he injures his Government by curtailing its sources of revenue and nullifying its efforts for welfare and prosperity of its people; but most of all, he injures himself. The fabric of humanity is so closely and delicately interwoven that the failure of one individual to recognize his responsibilities affects adversely the welfare of hundreds and often thousands of his fellows. Business must yield profits or failures will result. All business is buying and selling. The merchant buys goods and resells them in the same form, but because he adds an element of service he is entitled to a profit. The manufacturer buys materials in one form, changes it ...