Within that market, we must do everything we can to be the most desirable supplier. Notice too, that making more products only counts if we sell them. We can't fool ourselves into thinking business is good by making lots of products and putting them into inventory in the warehouse. There are many expenses for operating a business. Controlling how much money is spent is a key to staying in business.
Companies pay close attention to tracking and reporting costs.
We'll see the major categories of costs tracked. The Big 3 Up to this point, we treated costs as though they were one big category. Now it's time to see how companies divide their costs into different categories. They do this to track what they spend money for and to control that spending. For example, spending a dollar to make a product is very different from spending a dollar to advertise it.