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Biz-Café Weekly Performance Statement

Biz-Café Weekly Performance Statement. Ted Mitchell. What’s Wrong with it?. COGS is too macro and should have more detail Management expenses are basically a fixed OH doesn’t change sales does impact weekly operations Advertising and Promotion don’t have enough detail

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Biz-Café Weekly Performance Statement

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  1. Biz-Café Weekly Performance Statement Ted Mitchell

  2. What’s Wrong with it? • COGS is too macro and should have more detail • Management expenses are basically a fixed OH doesn’t change sales does impact weekly operations • Advertising and Promotion don’t have enough detail • Rent Expense is fixed OH, doesn’t change sales or weekly profits • Utilities is fixed OH, doesn’t change sales or weekly profits • Interest on loan is fixed OH, doesn’t change sales or weekly profits • Depreciation is an arbitrary method for matching costs and revenues over time, doesn’t change sales or dollar profits • Most of the cost to revenue ratios are budget control metrics and useless for management of marketing performance • A single period report is useless, it needs a point of comparison, the report from the previous period and the difference between them.

  3. What’s good and useful about it if it was weekly • Revenue • COGS if there was more detail • Gross profit • Gross profit Return on sales, GROS, helps set price and determine efficiency • Staff servers if there was more detail on hours • Ad/Promo if there was more detail • Weekly net profit

  4. Summary on Monthly Income Statement as Management Tool • It is not designed to help Managerial Decision Making • It has information that would be helpful if it was in a different format

  5. Fairly Traditional performance Report for Accountant’s to prepare and analyze

  6. This is different

  7. Weekly Performance Statement • The audience is not the owners • The audience is those charged with making profits for the owners • The focus is on items that have a direct impact on the weekly profit contribution • The Critical Focus is on the items that have a direct impact on the marketing profits. • These items are the four P’s of Marketing, cost of goods sold and weekly cost of operations

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