lower of total cost or total market

简明释义

总成本与总市价孰低

英英释义

The term 'lower of total cost or total market' refers to an accounting principle used to value inventory, where the value assigned to inventory is the lesser of its total cost (the price paid to acquire the inventory) or its total market value (the current market price for which it could be sold).

‘总成本或市场价值较低者’是一个会计原则,用于评估存货的价值,其中分配给存货的价值为其总成本(购买存货所支付的价格)或其总市场价值(可以出售的当前市场价格)中较低者。

例句

1.Our strategy is to always go for the lower of total cost or total market when negotiating contracts with vendors.

我们的策略是在与供应商谈判合同时,总是选择总成本或市场总价中的较低者

2.During the bidding process, we aim to submit a proposal that reflects the lower of total cost or total market to remain competitive.

在投标过程中,我们力求提交一份反映总成本或市场总价中的较低者的提案,以保持竞争力。

3.The finance team reported that the project's expenses were at the lower of total cost or total market, which is a good sign for our profitability.

财务团队报告称,项目的费用处于总成本或市场总价中的较低者,这对我们的盈利能力来说是一个好兆头。

4.In our procurement process, we always choose the lower of total cost or total market to ensure we are making the most economical decision.

在我们的采购过程中,我们总是选择总成本或市场总价中的较低者,以确保我们做出最经济的决策。

5.When evaluating suppliers, we consider the lower of total cost or total market to maximize our budget efficiency.

在评估供应商时,我们考虑总成本或市场总价中的较低者,以最大化我们的预算效率。

作文

In the world of business and economics, decision-making often revolves around various cost analyses and market evaluations. One critical concept that managers and entrepreneurs must grasp is the idea of the lower of total cost or total market. This phrase refers to a fundamental principle in financial analysis where one must choose between the total costs incurred to produce goods or services and the total market value of those goods or services. Understanding this concept is essential for optimizing profitability and ensuring sustainable growth.To elaborate, let’s consider a hypothetical scenario. Imagine a company that manufactures electronic gadgets. The total cost of producing these gadgets includes expenses such as raw materials, labor, overhead, and marketing. On the other hand, the total market value represents the potential revenue generated from selling these gadgets at prevailing market prices. When setting prices, the company must evaluate whether it can sell its products for more than the total cost incurred. This evaluation leads to the application of the lower of total cost or total market principle.If the total cost of production is higher than the total market value, the company faces a significant risk of incurring losses. For instance, if it costs $200 to produce a gadget but the market price is only $150, the company would be better off reassessing its production strategy or finding ways to reduce costs. Conversely, if the total market value exceeds the total cost, the company has the opportunity to maximize profits. Therefore, the lower of total cost or total market serves as a guiding metric in pricing strategies and inventory management.The application of this principle extends beyond mere pricing decisions. It can also influence broader business strategies such as product development and market entry. For example, if a company identifies a high total market value for a new product but realizes that the total cost of developing that product is prohibitively high, it may decide to abandon the project. On the flip side, if a product shows a favorable comparison between total cost and total market value, the company might pursue aggressive marketing strategies to capture a larger market share.Moreover, the lower of total cost or total market principle plays a crucial role in investment decisions. Investors often analyze the financial health of a company by examining its cost structures in relation to market performance. A company that consistently operates below the threshold of total cost relative to total market value is likely to attract more investors, as it indicates effective management and potential for future profitability.In conclusion, the lower of total cost or total market is not merely a financial term; it encapsulates a strategic approach to decision-making in business. By understanding and applying this principle, companies can navigate the complexities of the market landscape, optimize their operations, and ultimately achieve long-term success. As businesses continue to evolve in an increasingly competitive environment, the ability to assess and respond to the dynamics of cost and market value will remain a cornerstone of effective management and strategic planning.

在商业和经济的世界中,决策往往围绕各种成本分析和市场评估展开。管理者和企业家必须掌握的一个关键概念是较低的总成本或总市场这一理念。这个短语指的是财务分析中的一个基本原则,即在生产商品或服务所需的总成本与这些商品或服务的总市场价值之间进行选择。理解这一概念对于优化盈利能力和确保可持续增长至关重要。为了详细说明,让我们考虑一个假设场景。想象一家制造电子小工具的公司。生产这些小工具的总成本包括原材料、劳动力、间接费用和市场营销等开支。另一方面,总市场价值代表了以现行市场价格出售这些小工具所产生的潜在收入。在定价时,公司必须评估是否能够以高于所产生的总成本的价格出售其产品。这种评估导致了较低的总成本或总市场原则的应用。如果生产的总成本高于总市场价值,公司面临着重大亏损的风险。例如,如果生产一个小工具的成本为200美元,但市场价格仅为150美元,那么公司最好重新评估其生产策略或寻找降低成本的方法。相反,如果总市场价值超过总成本,公司就有机会最大化利润。因此,较低的总成本或总市场作为定价策略和库存管理的指导指标。这一原则的应用超出了简单的定价决策。它也可以影响更广泛的商业策略,如产品开发和市场进入。例如,如果一家公司发现新产品的总市场价值很高,但意识到开发该产品的总成本过高,它可能决定放弃该项目。反之,如果某个产品在总成本与总市场价值之间显示出有利的比较,公司可能会采取激进的营销策略以争取更大的市场份额。此外,较低的总成本或总市场原则在投资决策中也发挥着至关重要的作用。投资者通常通过检查公司的成本结构与市场表现的关系来分析公司的财务健康状况。持续在总成本相对于总市场价值的阈值以下运营的公司,可能会吸引更多投资者,因为这表明有效的管理和未来盈利的潜力。总之,较低的总成本或总市场不仅仅是一个财务术语;它概括了一种在商业中进行决策的战略方法。通过理解和应用这一原则,公司可以驾驭市场环境的复杂性,优化其运营,并最终实现长期成功。随着企业在日益竞争的环境中不断发展,评估和应对成本与市场价值动态的能力将继续成为有效管理和战略规划的基石。

相关单词

or

or详解:怎么读、什么意思、用法

market

market详解:怎么读、什么意思、用法