Business Administration 2257 Study Guide - Pest Analysis, Cash Flow, Financial Statement

• School: Western University
• Department: Business Administration
• Course: Business Administration 2257
• Professor: All

Document Summary

Market analysis (industry, environmental pest analysis, competitor analysis, our corporate capabilities) Competitors who, size and power (market share), pros and cons, target market, adv. Past financial analysis (statement of cash flows (operations, sources/uses, matching; ratios) Fixed costs: no change with activity level (rent, salary) Step: change in large amounts at distinct volumes. Amount of sale of one unit contributes toward recovery of fixed costs and then profit. Contrib. margin is uc of product as % of sales price cmr = Cash b/e units = cash fc/uc (cash var. Cash b/e sales = cash fc/cmr (cash var. = (cmr x % revenue) + (cmr x % revenue); or. = (projected sales b/e sales)/ projected sales. Segment direct costs: only costs traced directly to segment, used for s-t decisions. Fully allocated segment costs: all business costs allocated to various segments using fair method; l-t. Operations: net income, add back non-cash, negate abnormal activities (loss), changes current accounts.