by TheBusinessProfessor | Feb 23, 2025 | Operations, Project, & Supply Chain Management
What is the Project Planning Phase? The planning phase begins once the project is defined, accepted by stakeholders, and the project management team is in place. The planning phase entails the following: the project plans are documented, the project deliverables...
by TheBusinessProfessor | Feb 23, 2025 | Operations, Project, & Supply Chain Management
How to Choose a Project? Generally, upper management (such as the Steering Committee, Project Management Office (PMO), Project Selection Committee, etc.) chooses projects to be undertaken.While evaluating the project they will evaluate many areas, such as: Whether...
by TheBusinessProfessor | Feb 23, 2025 | Operations, Project, & Supply Chain Management
What is the Project Initiation Phase? The project initiation phase might include the following major task: Identifying the business problem or opportunity Defining the Project, Comparing Options Forming a project, Appointing a project team, and Getting Approval of the...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is a Debt to Equity Ratio?The debt-to-equity (D/E) ratio is used to evaluate a company’s financial leverage and is calculated by dividing a company’s total liabilities by its shareholder equity. This metric demonstrates the extent to which the company funds...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is the Working Capital Ratio? The working capital ratio, also called the current ratio, is a liquidity ratio that measures a firm’s ability to pay off its current liabilities with current assets. Current Ratio = Current Assets / Current Liabilities When current...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What are Profitability Ratios?Profitability Ratios are used to determine how profitable is a given company as compared to a different company. The most common ratios used for this comparison include: Gross Margin RatioGross margin ratio = Gross margin / Net...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is the Capital Expenditure Ratio?The capital expenditure ratio is cash provided by operating activities divided by capital expenditures. Capital expenditure ratio = Cash provided by operating activities / Capital expendituresThis ratio measures the company’s...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is Residual Income?Residual Income is the dollar amount of division operating profit in excess of the division’s cost of acquiring capital to purchase operating assets. The calculation is as follows:Residual income = Operating income − (Percent cost of capital ×...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What is Segmented Income? Segmented income is segment revenues minus segment expenses. It is often used to assess and compare the performance of company segments considered Investment Centers of the company. . The starting point for evaluating investment centers is...
by TheBusinessProfessor | Feb 23, 2025 | Managerial & Financial Accounting & Reporting
What are Responsibility Centers? Responsibility centers are categorized depending on the level of control over revenues, costs, or investments. Responsibility centers can be based on such attributes as sales regions, product lines, or services offered. The purpose...
