Cost of doing business

Leaders beware that monies used belong to God, so we are to be good stewards over these funds.  Thus, leaders must think in terms of cost of doing business at all times.  Meaning, before moving forward on a project, ask: “What will the total cost be to the church?”  Henceforth, the dollar cost averaging (DCA) formula will help you figure out the cost of doing business for the church.

Also, remember that time is money, and car fuel is money too, so don’t forget to factor both time and fuel into the cost of doing business.  For example, you may save a dollar purchasing an item in Philadelphia, but you burned about $10 in gas just to get it—not to mention the time wasted.

Use the Dollar Cost Averaging (DCA) formula when deciding on how to allocate church funds.  Listed below is the most basic DCA formula.

[Dollar Cost Average (DCA) Formula]

[(Total cost of items purchased/number of people) = DCA]

     Food purchase example:

Option 1	Option 2
Chicken Soup Dinner People: 30 Cost of goods: $75	Steak Dinner People: 30 Cost of goods: $200
Total every item on the menu, and divide it by the number of people. [($75 total food cost/30 people) = $2.50 per plate]	Total every item on the menu, and divide it by the number of people. [($200 total food cost/30 people = $6.67 per plate]