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11 - Basic Business Concepts and Cost Accounting and Analysis

Published online by Cambridge University Press:  24 January 2025

By
Simon Vilms Pedersen  and
Sven Gjedde Sommer
Edited by
Sven Gjedde Sommer ,
Morten Lykkegaard Christensen ,
Birgir Norddahl ,
Morten Ambye-Jensen  and
Maria Cinta Roda-Serrat
Sven Gjedde Sommer
Affiliation:
Aarhus Universitet, Denmark
Morten Lykkegaard Christensen
Affiliation:
Aalborg University, Denmark
Birgir Norddahl
Affiliation:
University of Southern Denmark
Morten Ambye-Jensen
Affiliation:
Aarhus Universitet, Denmark
Maria Cinta Roda-Serrat
Affiliation:
University of Southern Denmark
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Summary

Perhaps paradoxically, it is vital for any newly founded company or established business not to focus exclusively on technology development, technology maturation, and product design. Of course, having a product that performs according to specification is critical, but if the market is not well understood, you have a flawed business model, or your manufacturing costs far exceed what customers are willing to pay for your product, then even if the technology is excellent the business might fail. This chapter is devoted to basic business concepts and fundamental principles in cost accounting, analysis, and market research. Topics include an introduction to value chains, calculating capital costs of building new plants or acquiring new units for production (CapEx), operational expenditures (OpEx), learning curve analysis, and assessment of profitability. The chapter will also introduce basic tools and methods for market research, which will provide the necessary insights to position your technology in a constantly evolving market.

Keywords

value chaincost calculationsmarketlearning curves
Type
Chapter
Information
Bioprocesses
A Comprehensive Guide to Sustainable Resources in the Non-Fossil Era
 , pp. 386 - 423
Publisher: Cambridge University Press
Print publication year: 2025

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References

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