MGMT 30B Lecture Notes - Lecture 10: Financial Statement, Income Statement, Accounts Receivable
8 Jun 2016
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Lecture 11 february 10: produce financial statements by segments instead of company-wide, segment: any portion of a financial company that we want to split up to find out, purposes: C. 1) helps management find profitability of each segment: steps: Traceable fixed costs: costs that can be tied to that segment. Costs that can be traced to a specific segment are allocated to other segment (d. 2. b. ii) (d. 2. b. iii) Fixed costs that support operations of entire company, not just one segment. Segment contribution margin = segment sales segment variable expenses (d. 3. b) Segment margin = segment sales segment variable expenses - Ii) what is a budget: future plans expressed in numbers, purposes: B. 2) control to make sure we follow budget. Sales budget: budgeted unit sales x unit sales price.
