Assets, Cash Flow and Variable Costs

A Blueprint for Digital Companies’ Financial Reporting

Harvard Business Review

AUGUST 3, 2018

For example, ostensibly, Facebook’s customers are its daily users (call them “asset units” for argument’s sake). Those outlays could be on soft avenues, such as customer acquisition, data breach and safety, regulatory fines, and product enhancement, or on hard assets, such as hardware, servers, and cellphone towers.

Variable Costs

Variable Costs Revenue Assets Accounts

The Challenges GM Is Facing, and the Reasoning Behind Its Plant Closures

Harvard Business Review

NOVEMBER 30, 2018

Capital-intensive factories have a high-fixed-cost, low-variable-cost operating model. If you greatly reduce the production volume, the cars that do come out have to absorb more of the fixed costs, and that eventually sends the product into a profitability death spiral. These questions that doesn’t get asked enough.

Fixed Costs

Fixed Costs Assets Cash Flow Variable Costs

OrgDev Digest

A Blueprint for Digital Companies’ Financial Reporting

The Challenges GM Is Facing, and the Reasoning Behind Its Plant Closures

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