Responsibility for the financial condition of the company lies with the CEO and functional directors of the company. They must be able to generate profits and money. “Igor Chugunov’s Business Consulting” is ready to help with this through their training.
What do the terms “financial condition of an enterprise” and “effective enterprise” mean?
The term “financial condition of an enterprise” means the results of an assessment of the ability of an enterprise to generate net profit, positive net cash flow, increase its market value, pay for its short-term and long-term financial liabilities in a timely manner and in full, retain its financial independence when raising borrowed capital. Continue reading
“Application of the CVP interconnection accounting model beyond the acceptable and relevant range or over long time periods.”
The CVP interconnection accounting model is a convenient model for making decisions on enterprise management within the acceptable range of the “Volume of production (purchase of goods) driver and its sales” driver. Spreading the logic of the accounting model beyond the acceptable range without changing the revenue function from product sales and the enterprise total cost function is an error, since these functions are non-linear over a wider range of changes in driver values. Continue reading
How does optimal stock management and effective inventory management compare?
Optimal inventory management is SKU inventory management that meets any criterion (rule) of optimality, i.e. the best fit rule. The criterion of optimality consciously or unconsciously selects the subject of management, for example, a specialist in inventory management. Consequently, the correctness or inaccuracy of the choice of inventory management criteria determines the optimality or nonoptimality of their management.
The criterion for optimizing the inventory management of an enterprise should best suit its marketing, production, logistical and financial situation and the highest economic goals of the enterprise. Continue reading