Financial and accounting reports are for investors to see and can reflect the overall profitability of the company. However, let's review the previous
Face the problems mentioned in "Day One".
If you are a product manager for a company, there are currently three products under your jurisdiction. The superior gave you a new salary
Kim, which product should the funds be invested in?
This question involves concrete decisions. Financial accounting reports alone do not provide managers with the data they need to make decisions
according to. To make the right decisions, managers need to know the profitability and ROI of each of these three products.
What report can give such specific financial data? Management Accounting Report. Table 3-5 lists the financial accounting reports and
Differences in Several Aspects of Management Accounting Reports
Good metaphors for income statement, cash flow statement, balance sheet
It makes sense to look at the three reports together. Looking at any one of the reports alone is like "blind man feeling the elephant", which will lead to one-sided
in conclusion. For example, if two people are playing the same game on their respective computers, A has reached level 10, while B has only reached level 10.
Level 6. How would you evaluate: Which one is better, A or B? You will say: Of course it is A. However, if the game
Everyone has 10 lives, A has 1 life left, and B has 5 lives left, how would you evaluate who played well among them? add one more
A piece of information: A spent 2,000 yuan on equipment (such as cannons), while B did not spend money on equipment.
It is conceivable that how many levels are passed, how many lives are left, and the investment in equipment are the three dimensions to measure the level of game play.
Can look at in isolation:
◆Profit statement reflects a problem similar to "customs clearance quantity", which is the business performance of the enterprise;
◆The cash flow statement reflects a problem similar to "how many lives are left", which is the survival ability of the enterprise and the possibility of sustainable development.
capability;
◆The balance sheet reflects a problem similar to "equipment", which is how much assets the company has invested, and it is combined with the profit
Input and output efficiency.
Just look at the number of clearances and not how many lives are left: the game is not sustainable, and there is a possibility of failure at any time; just look at the remaining lives
The number of lives does not depend on the number of customs clearance: safety and sustainability are no problem, and there is no danger if there is no action, but it deviates from
It understands the basic direction and purpose of playing the game; what equipment measures is the ratio of input to output.
For a company, the three dimensions must be combined, not only to look at business performance, but also to look at cash flow, and at the same time to measure investment
output efficiency.