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HA401 : The Class : Finance : Revenues : Changes
One of the most important elements of financial analysis is to be able to identify the areas and causes of change. In a large business with many products and departments, an effective financial analysis must locate the department that is changing and identify the causes of change. Is it in revenues — volume or rate. Is it in expenses — wages, direct or indirect costs. One department or many departments may be impacting positive or negative changes.
Changes are identified by comparing actual performance to last year or budget performance. These changes can be for a month, quarter or year. The more information that is obtained about the changes, the better chance that good decisions can be made to respond to the changes.
Once you have completed this module you should:
Go on to Reading 9: Key
Financial Statements
or
Go back to Topic 1: Revenues
E-mail Lloyd Shelton at Lloyd.Shelton@nau.edu
or call (928) 527-7518
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