Financial modelling Flashcards
1
Q
Operating costs
A
FC + VC
2
Q
VC
A
-Grow/decrease along with business activity
-% of revenues
-by projecting p x q
3
Q
Fc
A
Not directly related to revenues and may be assumed to grow at their own rate
4
Q
Economies of scale
A
Reached when average costs per unit fall and volume rises
5
Q
Break even point
A
Crucial to support the decision making process
Q= FC/(p-Vc)
Per unit
6
Q
COGS
A
Cost of goods sold
7
Q
- Insignificant non operating item
A
Financing expenses/revenues
8
Q
- Most insignificant non-operating item
A
Taxes
9
Q
- Most insignificant non-operating item
A
Unusual charges/revenues
10
Q
To build a model you must:
A
- Draw an industry overview with the help of the 5 forces framework
- Draw the company profile, a BM
11
Q
KYC
A
Know your client
12
Q
Kym
A
Know your market:
Your product and company
Your competition
