Book contents
- Frontmatter
- Contents
- List of figures
- Introduction
- Acknowledgements
- Part 1 A dream of future wealth
- 1 Income and outcome
- 2 Fool's gold
- 3 Play the game
- 4 The judgment of balance
- 5 Return to reality
- 6 The cost of success
- 7 Profit and cash
- 8 Time to take stock
- 9 A capital asset
- 10 Mind your own business
- 11 The taxonomy of fog
- 12 The Merchant of Florence
- Part 2 The hidden art of management
- Appendix 1 Mathematical anchor
- Appendix 2 Getting to grips with cash
- Postscript
- Bibliography
- Index
6 - The cost of success
from Part 1 - A dream of future wealth
Published online by Cambridge University Press: 05 June 2014
- Frontmatter
- Contents
- List of figures
- Introduction
- Acknowledgements
- Part 1 A dream of future wealth
- 1 Income and outcome
- 2 Fool's gold
- 3 Play the game
- 4 The judgment of balance
- 5 Return to reality
- 6 The cost of success
- 7 Profit and cash
- 8 Time to take stock
- 9 A capital asset
- 10 Mind your own business
- 11 The taxonomy of fog
- 12 The Merchant of Florence
- Part 2 The hidden art of management
- Appendix 1 Mathematical anchor
- Appendix 2 Getting to grips with cash
- Postscript
- Bibliography
- Index
Summary
‘My other piece of advice, Copperfield,’ said Mr. Micawber, ‘you know. Annual income twenty pounds, annual expenditure nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery. The blossom is blighted, the leaf is withered, the god of day goes down upon the dreary scene, and – and in short you are for ever floored. As I am!
Charles DickensEven fruit-sellers have their costs and it is easy to imagine what these might be in the case of those oranges. The owner of the forest has now caught up with the entrepreneurial siblings and has patiently explained that the oranges are not free after all. He accepts that this was a genuine misunderstanding and no repercussions are involved with regard to the oranges they have picked so far. But from now on they must pay him for the oranges, instead of assuming that they are free on the tree.
So each time they pick an orange they now have to pay something to the forest owner. He sends his woodsmen to check the orange trees from time to time and he expects them to keep a record of the number of oranges picked and the amount that is therefore owed to him. How can we introduce this new factor into our simulation model?
- Type
- Chapter
- Information
- Financial Management for BusinessCracking the Hidden Code, pp. 37 - 41Publisher: Cambridge University PressPrint publication year: 2010