tag:blogger.com,1999:blog-10989652.post1406329873629632919..comments2024-02-13T04:29:44.662-05:00Comments on Inner Sanctum of the Ninveah: Sizing the ProfitKirith Kodachihttp://www.blogger.com/profile/12322297953184168725noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-10989652.post-34399758954004776002016-10-20T13:40:45.762-04:002016-10-20T13:40:45.762-04:00From my own experiences:
1. Take a financial acco...From my own experiences:<br /><br />1. Take a financial accounting class.<br /><br />95% of what you are trying to do and the questions you have are covered in any intro to financial accounting class. Specific topics for accounting for a manufacturing business may not be covered in the introductory class, but once you know the basics it shouldn't be hard to pick up.<br /><br /><br />2. Decide how much information you want to collect and report on. <br /><br />If you decide that you want to know the profit and cost of goods sold/manufactured for each line of products you build... get ready for a lot of tedious record keeping. <br /><br />If you decide you just need to know the profit and cost of goods sold/manufactured for the entire business, without digging into details, it's much easier and less work. You'll go from tracking costs of each individual material bought and used, to periodically tracking the wallet ins and outs and your current inventory value.Cassandra Masamihttps://www.blogger.com/profile/17776578757908528640noreply@blogger.comtag:blogger.com,1999:blog-10989652.post-1488712876329269792016-10-20T12:00:22.237-04:002016-10-20T12:00:22.237-04:00Kirith, have they made clear the idea of third-par...Kirith, have they made clear the idea of third-parties being able to use the engineering complex for a fee set by the owner? That could make a lot of the partnership elements simpler in that people can pay to use your facility. Granted it doesn't make your investor relationship easier. :)<br /><br />Oh, and you may have taken econ (and that's good for a lot of Eve) but yeah, this is all Accounting and Finance. You can get into First-In-First-Out accounting and all that. Too bad LMEVE (or similar) doesn't cover this for you?Anonymoushttps://www.blogger.com/profile/06561998031457981240noreply@blogger.comtag:blogger.com,1999:blog-10989652.post-49381812794448605022016-10-20T10:36:11.661-04:002016-10-20T10:36:11.661-04:00I'm surprised that your shareholders would sup...I'm surprised that your shareholders would support your setting up of a Reitaru. If I was investing in the current business, I would seriously consider withdrawing my isk (from your project) when poses disappear. <br /><br />Rob Kaichinhttps://www.blogger.com/profile/17972854173258346444noreply@blogger.comtag:blogger.com,1999:blog-10989652.post-64575699400553121652016-10-20T10:26:59.862-04:002016-10-20T10:26:59.862-04:00If this was an actual real world business then pro...If this was an actual real world business then procurement of the minerals, the manufacturing, and the sales/marketing would all be separate divisions. Procurement and manufacturing would be cost centers and the sales would obviously be a revenue center. Profit calculations are extremely easy since your bookkeeping entries for the first two are negative and your entries for the sales are positive (you hope). The key here (as in the Real World) is to do your bookkeeping on the basis of fiscal time units (usually quarters). You simply add up all the costs over the last 3 months and add up all the sales over the last 3 months and subtract the two. It is more of an accounting nightmare to run the bookkeeping on a per unit basis!<br /><br />As for your engineering complex you can handle that the same way it's handled in the Real world (and the post you quote mentions it but it can be made easy). Just decide how quickly you want to payoff the investment. If you think you should have it paid off in a year and you've got quarterly accounting then divide the cost by 4 and each quarter you subtract the cost from your quarterly profits. Treat the investment as a loan to be repaid by the profits spread out over how every many quarters you think is right (or your investors think is right).<br /><br />Linked to the quarterly report of profit, revenue, and costs is a statement of assets. You would list any items up for sale,items in manufacturing, minerals, and the citadel/engineering complex as assets valued at the current listed prices. This value would tell your investors how much value they have if you were to dissolve the project and payout to your investors.<br /><br />You can in fact do all this through the API and the transactions journal and import the results into a spreadsheet for given time periods. You don't actually need to setup a separate corporation even so long as you setup different wallet divisions and maintain discipline - only buying minerals from one division, setting up jobs from another, sales in another and so forth. It actually makes the effort easy once it's set up.<br /><br />The important thing to realize is that this setup makes it possible to break each effort (procurement, manufacturing, and sales) into discreet activities that can be independently optimized. I have a spreadsheet that lists a number of possibilities --- what is my cost if I source minerals from buy orders/sell orders, what is my cost if I sell the product to buy orders/sell orders. This allows me to make decisions on a case by case basis when there are market changes. If you have a bottom line on what you want to accomplish profit wise this will always tell you when your effort isn't worth it and you can continue the business or close it up.Ragellehttps://www.blogger.com/profile/10285176601838226959noreply@blogger.comtag:blogger.com,1999:blog-10989652.post-47069697950264071762016-10-20T10:24:04.899-04:002016-10-20T10:24:04.899-04:00This sounds more complex than many real-world corp...This sounds more complex than many real-world corporations... you're a brave man for managing all this!Talvorian Dexhttps://www.blogger.com/profile/01349917611382684205noreply@blogger.com