1 / 13

Chapter 12

Operations Management: Financial Dimensions. Chapter 12. Objectives. To Define Operations Management To Discuss Profit Planning To Describe Asset Management To Examine Retail Budgeting To Examine Resource Allocation. Profit Planning. Profit & Loss (Income Statement) Net Sales

yestin
Download Presentation

Chapter 12

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Operations Management: Financial Dimensions Chapter 12

  2. Objectives • To Define Operations Management • To Discuss Profit Planning • To Describe Asset Management • To Examine Retail Budgeting • To Examine Resource Allocation

  3. Profit Planning • Profit & Loss (Income Statement) • Net Sales • Cost of Goods Sold (COGS) • Gross Profit (Margin) • Operating Expenses • Net Profit Before Taxes

  4. Asset Management • Balance Sheet • Assets • Fixed • Hidden • Liabilities • Net Worth • Net Profit Margin • Asset Turnover • Return on Assets (ROA) • Financial Leverage

  5. Net Profit Margin Asset Turnover Financial Leverage Return on Net Worth X X = Strategic Profit Model Net Sales Total Sales Total Assets Net Worth Net Profit Net Worth Net Profit Net Sales X = X

  6. Key Ratios • Quick Ratio • Current Ratio • Collection Period • Accounts Payable to Net Sales • Overall Gross Profit

  7. Financial Trends • Initial Public Offerings (IPO) • Leveraged Buyout (LBO)

  8. Budgeting Preliminary Budgeting Decisions Who Develops the Budget(s)? What is the Budgeting Time Frame? How Often Are Budgets Planned? What Cost Categories Are Used?

  9. Cost Categories • Capital Expenditures • Operating Expenditures • Fixed Costs • Variable Costs • Direct Costs • Indirect Costs • Natural Account Expenses • Functional Account Expenses

  10. Ongoing Budgeting Process Performance Standards Planned Expenditures Actual Expenditures Monitoring Results Adjustments Budgeting Preliminary Budgeting Decisions Who Develops the Budget(s)? Goals What is the Budgeting Time Frame? How Often Are Budgets Planned? What Cost Categories Are Used? What Level of Detail is Used? How Flexible Are Budgets?

  11. Resource Allocation • Costs • Capital Expenditures • Operating Expenditures • Opportunity Costs • Productivity

  12. What You Should Know • The Definition of Operations Management • The Profit Planning Process • A Description of Asset Management • Strategic Profit Model • Business Ratios • Financial Trends in Retailing • Retail Budgeting • Resource Allocation

  13. Questions? Questions? Questions?

More Related