Marketing and Finance

A manufacturing company is uniquely positioned to benefit from activity-based costing. Activity-based Costing is a costing model that aids a company in determining the costs of certain activities involved in producing a product/service and distributing that product/service to a customer.

Lesson Exercise Answer Learning Outcome: By the end of this lesson, you will be able to explain what annual accounts contain beyond the basic financial statements, why larger or more complex businesses need to produce them, and where marketing-relevant detail typically sits inside them. What Are Annual Accounts, and How Do They Differ From a…

An Annual Report is a statement prepared by companies that are traded publicly. The development of an Annual Report provides inherent value in the process of reviewing major financial and operational achievements that occurred during the past 12 months.

Lesson Exercise Answer Learning Outcome: By the end of this lesson, you will be able to explain the balance sheet equation, list what belongs on each side of a balance sheet, and explain why marketers should care about a company’s balance sheet position. What Is a Balance Sheet, and Why Does It Balance? A balance…

The main purpose of a Cash Flow Statement (CFS) is to help the business owner plan and control the flow of income in order to meet scheduled financial obligations. The information illustrated in the Cash Flow Statement also aids lenders and investors in determining a company’s financial health.

Lesson Exercise Answer Learning Outcome: By the end of this lesson, you will be able to calculate a contribution margin, explain how it’s used to price a special order, and describe how contribution analysis relates to identifying overhead costs. What Is Contribution Analysis? Most day-to-day pricing decisions can be made with routine costing information a…

Lesson Exercise Answer Learning Outcome: By the end of this lesson, you will be able to distinguish direct costs from indirect costs, calculate a basic overhead rate, and explain why the distinction matters for accurate pricing and for government-funded contracts. Why the Direct/Indirect Distinction Matters Sorting a business’s costs into direct and indirect categories is…

Lender and investors are able to glean a lot of valuable information from the data available in a company’s’ financial statements and records. Their priority is insuring that they are repaid for any loan or financial investment.

It may not be readily apparent to you how financial statements are relevant from a marketing perspective. You may ask – What can these financial statements tell me about my Marketing Plan? First, let me outline each briefly and then elaborate on why they will be so important to you and your future success.

Marketing budgets ensure that your marketing plan or campaign is realistically costed. Some pre-budget research into your industry and market, your competitors and your business’s historical marketing metrics helps marketing managers make a more informed calculation. You should cost out all general marketing and marketing communications expenses. You could also work in conjunction with an…

The Profit and Loss statement is one of the main business financial statements. Among the various financial statements, a Profit and Loss statement most closely resembles what is referred to as

Lesson Exercise Answer Standard Costing Learning Outcome: By the end of this lesson, you will be able to explain what standard costing is, identify the three cost categories it typically monitors, distinguish between ideal, current and basic cost standards, and describe how standard costs are used to calculate variances. What Is Standard Costing? Standard costing…