Professional Documents
Culture Documents
MAS-Reviewer 1
MAS-Reviewer 1
MAS-Reviewer 1
CVP Analysis
A. Factors Affecting Profit
a. Selling Price per Unit
b. Variable Costs per Unit
c. Volume or Number of Units
d. Fixed Costs
e. Sales Mix
B. Break-Even Analysis
𝑭𝒊𝒙𝒆𝒅 𝑪𝒐𝒔𝒕𝒔
a. 𝑩𝑬𝑷 𝒊𝒏 𝑷𝒆𝒔𝒐 =
𝑪𝒐𝒏𝒕𝒓𝒊𝒃𝒖𝒕𝒊𝒐𝒏 𝑴𝒂𝒓𝒈𝒊𝒏 𝑹𝒂𝒕𝒊𝒐
𝐹𝑖𝑥𝑒𝑑 𝐶𝑜𝑠𝑡𝑠
b. 𝑩𝒆𝒑 𝒊𝒏 𝑼𝒏𝒊𝒕𝒔 =
𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑀𝑎𝑟𝑔𝑖𝑛 𝑝𝑒𝑟 𝑈𝑛𝑖𝑡
C. Required selling price, unit sales, and peso sales to achieve a target profit
Quantitative Techniques
A. Regression and correlation analysis
a. Regression – Expresses the relationship in the form of an equation.
b. Correlation – Quantifies the strength of the linear relationship between a pair of variables.
B. Gantt Chart
a. Shows different activities or tasks in a project as well as their estimated start and completion times
C. Program Evaluation Review Technique (PERT) / Critical Path Method (CPM)
a. PERT – Networking technique used for planning and controlling the activities in a project.
D. Probability Analysis
a. Commonly used in planning as well as in decision making under uncertainty.
b. Decision making under conditions of Uncertainty – Probability distribution of the possible future states of
nature(events) is not known and must be determined subjectively.
E. Learning Curve
a. Mathematical expression of the phenomenon that incremental unit costs to produce decrease as managers and labor
hain experience from practice.
F. Inventory Models
a. Help to find out the order quantity which minimizes the total costs.
b. Carrying Costs – a.k.a holding costs, refers to the total cost of holding inventory.
i. (Average order Quantity x Carrying Cost per Unit)
c. Order Costs – Cost of ordering inventory
i. (No. of orders in a period x Ordering cost)
d. Economic Order Quantity – Ideal order quantity which minimizes the total cost
Financial Management
Capital Budgeting
A. Capital Investment decision factors
a. Net Investments – Costs or cash outflows less cash inflows or savings incidental to the acquisition of the
investment projects.
NET INVESTMENT
• Proceeds from Sale (-) • Acquisition Costs (+) • Increase in Working Capital (+)
• Trade-in Value (-) • Directly Attributable Costs • Decrease in Working Capital (-)
• Tax on the gain on sale (+) (+)
• Tax on loss on sale (-)
• Avoidable repairs, net of tax (-)
• Removal Cost, net of tax (+)
CASH FLOWS
Operating Cash Flows After Tax Cost Savings or Cash Operating Income After Tax
Cost savings/Cash Operating Income xxx 100 Tax Shield on Incremental xxx 70
Incremental Depreciation (Old-New) (xxx) (20) Depreciation xxx 6
Cash Inflow Before Tax xxx 80 Operating Cash Flow After Tax xxx 76
Incremental Tax (30%) (xxx) (24)
Incremental Net Income xxx 56 Cash OI/CS x (1 – Tax Rate) 100 (1 – 30%)
Add Back Incremental Depreciation xxx 20 Incremental Depreciation x Tax Rate 20 (30%)
Operating Cash Flow After Tax xxx 76
Management Consultancy
Economic Concepts essential to obtaining, and understanding an entity’s business and industry
F. Macroeconomics
a. GDP
• Measure of production of goods during certain period.
b. Inflation
• A rise in rate of prices.
c. Fiscal and monetary policies
• Important tools to keep the economy healthy.
• Fiscal Policy – Produces public services from taxes.
• Monetary Policy – Keeps prices low, and predictable.
d. FX rates
• Used to determine changes to a range of market assets
G. Microeconomics
a. Supply and Demand
• Supply – Goods available in the market.
• Demand – Number of goods customers want to buy.
b. Market Equilibrium
• Supply and Demand are equal in the market.
c. Price Elasticity
• Changes in the Price affect the demand for a product.
d. Market Structure
• Understanding business by determining the degree of competition inside the industry.
e. Production and Cost functions
• Production Function – Output is determined by various inputs.
• Cost Function – Cost of producing different levels of output.