Examines the practical financial considerations in making management decisions.   Great emphasis is placed on the ramifications of my “Six Favorite Costs” (fixed costs, variable costs, direct costs, indirect costs, sunk costs and opportunity costs).  Issues considered include fixed & indirect cost allocation, contribution, activity based costing, loss leaders and scalability.  Financial distress strategies are also covered.  As a practitioner of finance I have included common pitfalls I’ve observed such as cross-subsidizing business units, transfer pricing problems, programs that perpetually underperform and the myth of low-asset businesses.  Also covered are traditional financial decisions such as make-vs-buy, lease-vs-buy, liquidity-vs-solvency, the law of large numbers and price discrimination.

Relevant Audience: Any professional who makes or advises in financial decisions.