Entrance for Studies in Finance Gooblog Edition
blog for business studies

Philip Ramsden, Teach Yourself: Finance for Non Financial Managers:Hodder Headline, 1996




historic cost ➡ worth now

stock accounting three valid method

1)FIFO first in first out

2)LILO   last in last out

3)average cost

gross profit

overheads: staff cost, depreciation and indirect cost

indirect cost: stationary, equipment hire, legal fees, bank charges


the straight line method

the reducing balance method

the bottton line: the final profit

PBIT: the manager may prefer PBIT

goodwill: the diference the pays to acuire another company and the book value of assets of the purchased company

current assets: cash trade debtors, prepayment, stocks(=inventory) 

current liablities: trade creditors 

working capital : current assets - curent liabilites

equity: what is owed to the shareholders or owners of th eorganization

 capital: initial and subsequent ibvestments by the owners, retained profit ,  revaluation reserve,

preferce share(a hybrid fo equity and debt) 

current ratio= current assets/current alibbilities

quick ratio=(current assets- stocks)/curent liabilities

debtor days= (debtors/sales inthe year) × 365 ➡ the lower the better

stock turnover=cost of goods sold/stock

gearing=loans/(loans+equity capial)

interest cover=(PBIT)/interest charged ➡ the higher the better

users of financial information: stakeholders: competitors, customers, customer(long term viability of their supplier), employee, bankers, suppliers and creitd agencies, investment brokers, city analysts, financial press

other sources; trade exibitions, trade associations, visit the company, customers and suppliers, the media nonfinancial news

direct costs: the prime cost:those associated with the making the product

indirects cost: supervisors, inspectors, testers, heating and lighting, sales and marketing, addministration  

variable cost 

fixed cost

marginal cot: viable costs divided by the putput

full cost full costing, absorption costing

break even analysis







コメント ( 0 ) | Trackback ( 0 )

« Charles R.Gei... Hugo Dixon, T... »