Profit Maximization

Bleeding a Project
An unethical practice in real estate development and property management where project costs are manipulated for excessive profit or property value is compromised for immediate income.
Cherry Picking
An accounting practice or business policy designed to highlight the most profitable aspects of financial transactions or customer relationships while minimizing or excluding less profitable or loss-making elements.
Killing
In a financial context, 'killing' refers to a significant reward or huge profit gained from an investment. It can also imply the act of stopping or halting a project or endeavor.
Least-Cost Production Rule
In economics, the least-cost production rule states that in order to maximize profit, a firm must ensure that each dollar spent on each unit of input produces at least an equivalent dollar value of output.
Linear Programming
Linear programming is a mathematical technique used for optimization, particularly suited for scenarios involving constraints. This method assists in achieving the best possible outcome, such as maximizing profits or minimizing costs, under specified limitations.
Linear Programming (LP)
Linear Programming (LP) is a mathematical method for determining a way to achieve the best outcome in a given mathematical model for decisions with numerous alternatives. LP is often used in business, economics, and engineering to maximize profit or minimize costs in processes with varying levels of inputs.
Marginal-Cost Transfer Prices
A method for setting transfer prices equal to marginal costs to help managers identify the optimal output levels for maximizing profits when there is no market for goods and services traded between divisions of an organization.
Milking Strategy
A short-range marketing strategy aimed at extracting the largest possible profit from an item in the shortest possible time, typically without considering the item’s long-range sales potential.
Yield Management: Maximizing Revenue Efficiency
Yield management, also known as revenue management, is a strategy used in various industries to optimize income and profit through dynamic pricing and resource allocation.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.