Personal income quotes

A large income is the best recipe for happiness I ever heard of. 
 ♂ Jane Austen 

A wise man will live as much within his wit as within his income. 
♂ Lord Chesterfield 

Cannot people realize how large an income is thrift? 
♂ Marcus Tullius Cicero 

Economists are coming to acknowledge that measures of national wealth and poverty in terms strictly of average income tell you little that is significant of the health or viability of a society. 
♂ Rowan D. Williams 

I am indeed rich, since my income is superior to my expenses, and my expense is equal to my wishes. 
♂ Edward Gibbon 

I'm living so far beyond my income that we may almost be said to be living apart. 
♂ e. e. cummings 

Invest three percent of your income in yourself (self-development) in order to guarantee your future. 
♂ Brian Tracy 

It is better to have a permanent income than to be fascinating. 
♂ Oscar Wilde 

Real poverty is less a state of income than a state of mind. 
♂ George Gilder 

The income from sales now covers the expense of materials but I expect this to improve. 
♂ Mike Thompson 

These days an income is something you can't live without - or within. 
♂ Tom Wilson 

It's not about lending a name to a project. It's truly creating a vision we've for years. We have a substantial amount of our personal income in this.

♂ Rande Gerder

Areas with a larger personal income can support more stores. A higher level of per capita income can support luxery-type stores. 
♂ David Lenze

The fact that households are saving so little, even with strong growth in personal income, is a potentially troubling development. 

♂ Joseph Abate

Collected by Rejaul Abedin from different sources. 

What are the simple ways to increase NOI (Net operating Income) except increasing sales under absorption costing?

Here is our topic is “what are the simple ways to increase NOI (Net operating Income) except increasing sales under absorption costing?” Therefore we have to find out the real solutions on it. Prior to go increasing NOI (Net operating income) we have to understand about Absorption costing, that what is Absorption costing actually?

Absorption Costing Meaning: As we know absorption costing wherever all the manufacturing costs are absorbed by only produced units. Alternatively, ended unit’s cost in inventory which includes direct labor, direct material and fixed manufacturing overhead and variable cost both. It frequently distinguished with direct costing or variable costing. The fixed manufacturing costs are not owed or assigned to the products manufactured in direct costing or variable costing. VC (Variable costing) frequently used in decision making for the sake of administration of the respecting company. For income tax reporting and exterior financial reporting the absorption costing is in fact needed. In the absorption costing method the fixed overhead is meant a product cost if it is not sold.Absorption costing is one sort of costing technique in which all types of usual costs either it is fixed cost or variable cost are charged to cost units produced or it is a technique in which all of the costs being linked with the production of goods or services. For manufacturing a demanding product a managerial accounting cost technique concerned. In absorption costing the total direct costs and overhead costs linked with manufacturing a product as cost based. GAAP (Generally Accepted Accounting Principles) needed absorption costing for outside exposure. Also absorption costing known as full costing or full absorption costing or the full absorption techniques. 

In absorption costing, variable manufacturing costs, since labor and raw materials are simply a part of the cost. This method is else measured fixed overhead and variable to be part of in on the whole cost of the service or product is offered thereby. The majority of the companies are seeking to increase their OP (Operating profit) require reducing these costs in the lack of maximizing sales. In fact, increasing sales or lowering costs are the two ways to improve profitability of companies. For reducing production cost, cost accounting can give you excess information to implement your plan.

The disadvantage of absorption costing is where the administrator may raise production level except total sales consideration in to account. This year costs may delayed to the next year under higher production level. This is meant, the administrator will appreciate for the raises to more profits.

Ladder to increase NOI (Net operating Income) except increasing sales under absorption costing which as below:

Ladder-A) Make sure a budget for all of the production costs. Appraise past production periods to produce goods in order to determine the normal expenses of your company.

Ladder-B) Discuss regarding budget with supervisors or managers of production departments and set out your budget. Now think about how to reduce production cost of the company.

Ladder-C) Recognize the specific reasons of cost overruns these are supposed to labor, manufacturing overhead or direct materials and so on.

Ladder-D) Differentiate the real cost of productions against cost of the budgeted items. Seek for unfavorable variances for production of goods or commodities where the concerned unit may spend more money.

Ladder-E) Identify economy resources to rectify the overrun costs. To update processes of production costs which produce less waste or raise the output of production of your workers of companies.

Ladder-F) Change the cost accounting techniques either it not goes well in your business operations. Analysis and recheck or existing cost accounting system may effect in activity based costing which may more accurate and lower allocated cost of production rather than standard costing.


Hope you read out attentively this article and also find out by yourself what ladder A to F you got as useful for your NOI (Net Operating Income). Else I expect you may try your best to increase your companies NOI (Net operating Income) under Absorption Costing except increasing sales of your company.  

Tips to increase your business operating income

Prior to enter in our main discussion let's know what is the meaning of operating income? Operating income shows a measure of earning strength from ongoing operations of a business organization, equivalent to earning before deduction of income taxes and payment of interests else operating income is called Earning before interest & taxes (EBIT) or recurring profit etc. Frequently operating income is considered as appropriate measure of a management's aptitude to make use of operating assets of an organization. It let us know, a unique assessment of the organizations profitability's tendency than net income. If operating income increases it shows in a net affect in a business operation wherever a manager may decrease cost of the products or commodities or increases in sales volume only. If a company increases its employees salaries in proportion, operating income may unaffected.      

  

Now we’ll penetrate in to the area of increasing business operating income, at this stage we have to understand clearly about followings to ensure operating income:

1. Period cost
2. Fixed cost
3. Product cost
4. Revenue   

About period cost: This is such type of costs that are not included in product costs. These period cost are expensed on the P/L account or income statement in the period when incurred, either purchased or manufactured goods period cost aren't inclusive as part of the costs. For instances, General & administrative expenses, sales expenses, sales commissions, employees salaries, rent etc are instance of period costs. These items are not period costs such as direct material, direct labor and manufacturing overheads etc.   

About fixed cost: Simply, fixed cost are those which doesn't changes with the sales level, if sales decrease or increase but not anything changes then fixed cost remains same as before. Fixed cost is such costs which are associated with the way of time in its place of with the units of output like rent, interest, salaries of permanent employees, depreciation etc. For example, if a company lease on a building premises, in that case, if company has to pay an amount of BDT.15000 each and every month to cover the lease cost but if doesn't produce anything throughout the month, the payment of lease is still due fully. 

Product cost: Product cost generally means is a cost of direct materials, direct labor, and manufacturing overhead that are consumed in order to produce a product. Product costs involves in making or acquiring a product. It can be consider or includes the charges which involves during the time of delivery of products or services to a customer. This type of cost can be recorded as an inventory asset if the products remain unsold. Then it is charged to the COGS (Cost of good sold) as early as possible that product is sold then will be treated as an expense in the P/L account or income statement accordingly.  

Revenue: As we know revenue is the amount of money and which is before paying for expenses and taking out taxes, for a business organization is it the total amount of money which is received by concerned organization for the services provided or goods sold during a specific time period. Else it may includes all net sales, interest, any other increase in owner’s equity and replace of assets, which is also computed prior to expenses are deducted. For instances, revenue may be treated when money is received during a signing session in a contract or from spot sales collection, when services is given or any other times respectively. Cash basis and accrual basis are the two different accounting methods to recognize revenues in accounting rules. For your clarity, here I am giving a different example, if you make sales of 50 bottles of 200 ml shampoo for BDT. 110 [where BDT. Means Bangladeshi Taka as currency] each then you made BDT. 5,500, this BDT. 5,500 are your revenues in that particular amount if you pay our VAT, Taxes etc then you’ll get your profit. Yes, there is the difference between profit and revenue.

From above writing I think you got an idea about period cost, fixed cost, product cost and revenues. Proper utilization and understanding of these items and techniques shall help to gain your operating income in the respective business.