Design Bureau: Economic Model
Out of context: Reply #22
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And dude, this is my last burn on you, because you so richly deserve every piece of shit I've thrown your way.
You started this thread by making analogies to commodity trading and toilet paper. I guess in order to highlight your own ignorance? And then admit you have no clue when it comes to the service sector....great, so we know you're a moron, and yet you argue with us anyway.
Here's the bottom-line. You have no idea what you're doing, you're coming to an INTERNET MESSAGEBOARD to try and get your education. When really you should be taking an accounting class.
There are 3 major types of cost: Direct Materials, Direct Labor, and Overhead. The service sector's primary cost-centers is overhead and direct labor. Direct materials rarely if ever factors into the equation.
Overhead can fall into one of two categories: Direct and Indirect. Direct overhead is any overhead generated from the *direct* creation of a product or service. When NoPattern is masturbating on photoshop for a client, the direct overhead is the electricity he uses. Indirect overhead is every cost you incur regardless if NoPattern is masturbating or not....lease for a space, manager's salaries, etc.
And just a final burn for you....here is an article detailing cost allocation for Lawyers...yes, probably the most profitable and together set of cretins in the service sector.
http://www.olmsteadassoc.com/Res…
Gee, so many similarities to design. Maybe our industry isn't some disparate mess of liars and con-artists as you have tried to make us out to be, popovich?