Accounting and Finance

Accounting & finance

Economies of Scale

A color coded graph that shows the cost advantages that a business can achieve by increasing its scale of production.

Economies of scale exist when making more of the same product or service leads to a reduction in the cost of the individual product. To learn more click here.

Economies of Scale - Teaching

An illustration that depicts the evolution of a music class in three separate stages. In stage one (far left of the image) a music teacher is teaching one student how to play the violin. In the second stage (middle of the image) the music teacher is teaching four students how to play the violin. In the third stage (far right of the image) the music teacher is broadcasting the music lesson over the internet to dramatically expand its market reach. The image is meant to demonstrate how you can achieve economies of scale.

Economies of scale exist when making more of the same product or service leads to a reduction in the cost of the individual product. To learn more click here.

Economies of Scale - Shipping

An illustration of an X/Y graph that demonstrates how an increase in the number of units shipped allows businesses to lower their shipping costs per unit and achieve economies of scale.

Economies of scale exist when making more of the same product or service leads to a reduction in the cost of the individual product. To learn more click here.

Economies of Scale - Making Things

An illustration that shows three separate stages of a manufacturing processes and the relative cost per unit of each stage. On the far left side of the image there is one person manufacturing one product, this stage represents the highest cost per unit. In the second stage (middle of the image) there are five people involved in manufacturing multiple products, this stage is less expensive per unit than the first stage. On the third stage (far right of the image) a manufacturing plant has been created to streamline the manufacturing process. This image is meant to demonstrate how economies of scale can be achieved by investing in manufacturing infrastructure.

Economies of scale exist when making more of the same product or service leads to a reduction in the cost of the individual product. To learn more click here.

Economies of Scope - Food

An illustration that is broken into two sections. On the left side of the image, there are three different types of food (hamburger, corn on the cob, and baked potato) along with three different ways of cooking, or preparing them. The three different cooking methods are charcoal grill, an electric stove, and a microwave. On the right side of the image the same three types of food are all prepared on one propane grill. This image is meant to demonstrate the efficiencies that are created when you leverage production or manufacturing equipment and processes to create economies of scope.

Economies of scope exist when it's less expensive to make or deliver multiple products or services together versus separately. To learn more click here.

Economies of Scope - Delivery

An illustration of two different company headquarters. The company on the left side of the image has three separate trucks leaving their dispatch center to deliver three separate service offerings. The company on the right side of the image has one truck leaving the dispatch center. The company on the right uses one truck to deliver all three service offerings. Both companies provide the same service offerings but the company on the right has achieved economies of scope by leveraging the costs associated with their service trucks.

Economies of scope exist when it's less expensive to make or deliver multiple products or services together versus separately. To learn more click here.

Time-driven Activity-based Costing

balanced scale with input, time and people on one side and efficiency and profit on the other side

GroundSwell’s time-driven activity-based costing budgeting utilizes time series analysis, or time drivers, to analyze a company’s historical financials as well as to create monthly and annual projections. To learn more click here.

Time-driven Activity-based Costing Overview

A series of boxes, the letter x's and arrows breaking down the steps completed in time-driven activity-based costing budgeting & analysis

Time-driven financial analysis takes the time to do something multiplied by the things completing during a period of time and how much labor actually costs to calculate your total actual labor costs of doing something. To learn more click here.

TDABC Time Driver

A sketched mannequin employee completing a task with scissors being watched & timed by a sketched mannequin manager with a clipboard with a time driver monitoring sheet on it

A time driver is the amount of time it takes for an individual or team to consistently complete a recurring task. To learn more click here.

TDABC Utilization Rate

Two different sketched mannequins working on similar tasks with one being effective (working 80% of the time) and the other not (only working 20% of the time) and how much each actually works in an hour (80% utilization equates to 48 minutes worked in an hour) with 20% utilization equating to 12 minutes of actual work in an hour

GroundSwell's TDABC utilization rate calculates the percent of time actually worked based on the number of known tasks completed during a period of time. To learn more click here.

TDABC Effective Labor Rate

A sketch with two different hands with arrows above them representing worker A and B respectively with $10 dollar bills in them representing an employee's hourly pay rate plus two additional hands under them same arrow holding bags representing the typical 20% benefit load employers pay in additional to an employee's state pay. The two different arrows end on the right side of the image with a column depicting the different effective labor cost rates of worker A and B ($15 and $60 respectively) because worker A has a 80% utilization rate and worker B has a 20% utilization rate

GroundSwell's TDABC effective labor cost rate calculates the actual cost of labor including known employee benefit costs and utilization rates. To learn more click here.

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