Podcast
Questions and Answers
What is the ultimate objective of product managers?
What is the ultimate objective of product managers?
What is sales analysis used for in product management?
What is sales analysis used for in product management?
What is a key information required for marketing decision making?
What is a key information required for marketing decision making?
What is the primary purpose of financial analysis in product management?
What is the primary purpose of financial analysis in product management?
Signup and view all the answers
How can sales be defined in terms of?
How can sales be defined in terms of?
Signup and view all the answers
What is financial decision making closely related to in product management?
What is financial decision making closely related to in product management?
Signup and view all the answers
What is the purpose of gathering and analyzing company sales data?
What is the purpose of gathering and analyzing company sales data?
Signup and view all the answers
What is sales analysis a powerful tool for?
What is sales analysis a powerful tool for?
Signup and view all the answers
What is the importance of understanding how profits are computed in product management?
What is the importance of understanding how profits are computed in product management?
Signup and view all the answers
What is the primary goal of financial analysis in marketing?
What is the primary goal of financial analysis in marketing?
Signup and view all the answers
Study Notes
Financial Analysis Systems
- Financial analysis can be used in various ways, including profitability and sales analysis.
Types of Financial Analysis Systems
- Two types of financial analysis systems:
- Financial or custodial system: used to look at historical financial results, useful for external constituents like investors.
- Performance-based system: control-oriented, looks at today's performance based on variances from budgets.
Contribution-Oriented System
- Contribution margin: the amount of money left over after accounting for variable costs that go towards covering fixed costs.
- Fixed costs: do not vary in amount with sales or production volume, can be direct or indirect.
- Variable costs: vary in amount with sales or production volume.
Break-Even Analysis
- Break-even analysis: determines the level of sales at which a company breaks even.
- Managers often ask how far estimates can be off before the company begins to lose money.
Sales Analysis
- Sales analysis: gathering, classifying, comparing, and studying company sales data.
- Sales can be measured in terms of currency, units, or percentage of company sales.
- Sales data can be classified by product types, customer types, markets, order size, and time periods.
Profitability Analysis
- Profitability analysis: a full-costing approach, subtracts all costs associated with a product or service from revenues.
- Alternative accounting systems: can be used to analyze profitability, including conventional product profit accounting.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
This quiz covers the types of management accounting systems, including systems for looking at historical financial results and performance-based systems that analyze variances from budgets.
