Wednesday, October 7, 2009

Recession

Companies are prone to recessions because:
For example at Syncrude everything we sell/revenue, more specifically crude oil, goes down by 20%.
Our cost/input such as natural gas also goes down by 20%, but that only accounts for 1% of our production cost. Where else can we cut cost to match that 20% decrease in revenue?
And the accounting process is terribly lengthy, it takes 100 people to put together a month end summery and at least another month to react.
That's terrible, on my own accounting books, it takes me only 2 seconds to realize I loss my job and I should spend less tomorrow.

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