COMM 200 Chapter Notes - Chapter 13: Initial Public Offering, Accounts Payable, Private Equity
24 Dec 2016
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Document Summary
At the broadest level, financial analysis looks to draw conclusions in 5 key areas: revenue model, cost structure and cost drivers, margin requirements, cash operating cycle, capitalization requirements, the revenue model. This focuses on how the organization generates sales and ultimately the dollars received from the delivery of its products and/or services to the marketplace. Per unit selling price x quantity sold = sales revenue: cost structure and cost drivers. Cost base is made up of the total costs associated with delivering the organization"s products or services to the marketplace. Variable (direct) costs are directly tied to the manufacturing of a product or the delivery of a service depending on the type of business being assessed. Fixed (indirect) costs are not directly tied to the manufacturing of a specific product or the delivery of a specific service: they exist as a result of conducting our business and operating our company.
