FINANCIAL OBJECTIVES Flashcards
Types of financial objectives
Revenue objectives - Goals relating to the levels of income from sales
Cost objectives - Goals relating to the expenditure for production Costs are the money that you spend generating a revenue - They might try to reduce their packaging costs by 10% within 12 months
Profit objective - Goals relating to the amount of profit to be achieved
Cash flow objectives - Goals relating to the ability of an organisation to fund its day to day operations - Is there sufficient inflow to cover the outflow
Investment objectives - Goals relating to the amount to be invested in corporate development strategies (Ex the purchase of new equipment) - The objective may be to invest 40% of last year’s revenue into new capital equipment
Return on investment objectives - Goals relating to the levels of profit to be achieved by each investment
Capital structure objectives - Goals relating to the extent the business is financed internally, or by debt.
Types of financial objectives
Revenue objectives - Goals relating to the levels of income from sales
Cost objectives - Goals relating to the expenditure for production Costs are the money that you spend generating a revenue - They might try to reduce their packaging costs by 10% within 12 months
Profit objective - Goals relating to the amount of profit to be achieved
Cash flow objectives - Goals relating to the ability of an organisation to fund its day to day operations - Is there sufficient inflow to cover the outflow
Investment objectives - Goals relating to the amount to be invested in corporate development strategies (Ex the purchase of new equipment) - The objective may be to invest 40% of last year’s revenue into new capital equipment
Return on investment objectives - Goals relating to the levels of profit to be achieved by each investment
Capital structure objectives - Goals relating to the extent the business is financed internally, or by debt.
