Business Administration 2257 Study Guide - Final Guide: Cash Cash, Cash Flow, Fixed Asset
8 Apr 2016
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Do not print and use in exam, use as a guide to make your own. Framework analysis, swot, pest financing, then choose equity vs. debt) Cost behavior formulas consideration, quantitative results, how sensitively effects these, how goals/constraints effect these: income statement- show changes in profitability, balance sheet- show financial requirements (if need. Make decision (back up with case facts & calculations) Direct costs = direct labor + raw materials + direct selling (use in contribution analysis and breakeven calculations) Unit contribution = selling price vc per unit. Target units = fixed costs + target profit. Target sales = fixed costs + target profit. Margin of safety = projected sales breakeven sales. B/e as a % of market =b/e sales in dollars/units. Selling price cost vc per unit (selling price - cash vc per unit) / sp. Relevance: must be future, effect cash, recurring, different b/w alternatives. Differential cash flow: are recurring, effect cash, include revenue and costs.
