Using Step Costs to Manage Capacity

Is Additional Capacity Worth the Cost?

Profitability is often a function of capacity. More sales may be extremely profitable or may trigger a step cost that plunges profitability. 

In this video, I’ll:

 - Explain the importance of step costs to determining profitability

 - Reveal one of the biggest budgeting mistakes I've seen

 - Describe the importance of bottlenecks and their impact on production

This video comes from my Better Budgeting Course

CPAs: Want to get CPE credit for videos and courses like this? Check out my CPE page.

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