RECR 270 Chapter Notes - Chapter 5: Barcode, Tasmania, Debit Card
19 Oct 2016
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Effective management: management to create an effect: all that is done is done to achieve a goal. Efficient management: whatever is done, is done w/economy of resources for optimal results. Financial objectives: 1st step to successful financial mgmnt determ/articulate clear obj. Must be measurable/achievable w/in specific period of time. Ability that enterprise has to gen. enough cash to pay bills. Measured ea. month by comparing total rev. w/total expenses. Have more rev. than expenses: profitability. Greater risk= more profit expected: other financial/operational objectives. Market share: % of overall mkt. for partic. product/service that bus. hopes to gain. Occupancy rate, use rate, load factor: % of avail. rooms, court times, airline seats filled by paying cust. Labor factor, food factor, fuel factor: % of total costs attributable to specific items i. e. labor, food, fuel. Some bus. consider these costs to be somewhat controllable/set targets below which they strive to hold expenses.
