COMMERCE 2BC3 Chapter Notes - Chapter 2: Human Resource Management, Chief Financial Officer, Gross Margin

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 2BC3
• Professor: Elly Zeng

Document Summary

Fixed costs: costs that are incurred regardless of the number of units produced. Variable costs: costs that vary directly with the units produced. Contribution margins or margins: the difference between what you charge for your product of service and the variable costs of that product. Gross margin: the total amount or margin you made, calculated as the number of units sold times the contribution margin. If it costs you to produce a good, and you charge , your margin is . If you sell 1,000,000 units then your gross margin would be ,000,000. Your fixed costs are subtracted from your gross margin to determine whether or not you were profitable. Strategic management: is a process, an approach to addressing the competitive challenges an organization faces. Strategic human resource management (shrm): can be thought of as the pattern of planned human resource deployments and activities intended to enable an organization to achieve its goals.