Understand better, report better

Every manager is forced to take choices and make decisions based on imperfect information and uncertainty. However, if you can quantify the unknowns you move from uncertainty to risk – and, it has to be said, there are some neat techniques for handling risk. A few of the most useful ones are introduced in this chapter. We are also going to build on the previous pages by examining break even, profit maximization, pricing policies, capacity planning, and inventory control.