It is very common in the examination to be given information about a company and to be asked to comment on the performance. It is clearly important in practice to have measures in order to determine whether or not the company is performing well.
It is important to measure both financial and non-financial performance, but in this chapter we will consider only financial performance. You will be given extracts from the company鈥檚 accounts for several years and be expected to analyse and interpret this information.
Hello! If I may ask about Dec 09 question BEC and calculation in respect of budgeted costs.
Why for budgeted costs in respect of Tuition materials, Catering etc it is actual student count of 7,200 used instead of budgeted student count 6,900? Perhaps, there is a reason that I just can’t remember now.. Thanks! Sintija
Regarding variable costs budget is flexed, that’s why 7200/8000 adjustment is applied to variable costs. Management requirement was to have actual vs budget income statement on comparable basis.
What I can not understand, is why the revenue part of the budget is not flexed like variable costs? Revenues are based on budgeted number of students 6900, while variable costs are calculated on the actual basis of 7200 students.
Any idea?
thanks for the lecture
You are welcome.
Wonderful Lecture. Thank you!
Great lecture. Thanks! I did notice the P/E ratio was calculated as price per share 脳 EPS. Thought it’s Price per share/ EPS. Shouldn’t it be consistent?
We are working backwards. The P/E ratio was supplied and we are working out the share price from that and the earnings
Crystal clear. Simply a superb standard of teaching. Thank you!
Thanks. Glad to know it was useful.
really good lecture, thank you
Nice lecture. Very educative and helpful. Thank you.
Thank you for the comment 馃檪
Thank you..! Great lecture 馃檪
This has increased my knowledge on financial performance measurement considering my understanding previously. Excellent
Thank you for the comment 馃檪
this an excellent lecture
Brilliant and swift analysis of the practice question. Ratios to play with depends on what the question/scenario says.