KH 4340 Lecture Notes - Lecture 8: Regression Analysis, Venture Capital, Pro Forma
11 Dec 2020
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Variable costs: costs that change in direct relation to number of items or products that might be consumed (ex. Fixed costs: remain constant and are independent of the level of organizational activity (ex. Fixed costs- refrigeration and cooking equipment that incur an expense regardless of how many food items are sold. Forecasting- process of determining what revenue and expense might appear in the future. Internal data- often referred to a primary data, this info is generated by the business itself. External data (secondary)- obtained from other sources (newspaper, databases, teams) Include past balance sheets and income statements, audited financial reports, annual reports, research/development reports, emails, surveys, and water cooler talk. By breaking its operation down into its basic elements based on internal data, a team can develop more appropriate budget. Benchmarking: allows an org. to compare itself to others. Companies and sport org. needs to look to the future when undergoing financial planning.
