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Financial Management (Controlling Costs (Material Management (negotiating…

- - - - layout & design
  - - - work-related illness
      - job-induced injury/illness
      - food safety
      - appropriate pt care
      - products that fails to meet standars
- - - - Higher inventory value = expenses appear higher
      - Lower inventory value: profits appear higher
    - - May not appear in budget, but included in P & L
    - - May not appear in operating budget, but included in P & L
    - - Calculated by dividing the purchase of an item by its expected lifetime
    - - Income taxes, not sales taxes
      - Taxes on employee wages are reported as indirect labor costs
  - - - checking/savings/real estate/inventories/equip.
    - - Current liabilities
        
        Accounts Payable
        
        money owed
        
        Payroll Liabiity
        
        salaries/wages owed
        
        Accrued Liability
        
        payment to be made in the future (ex. PTO & income taxes)
        
        Unlearned Revenue
        
        from advanced payments for products yet delievered
        
        Short-term debt
      - Long-term Debt
        
        any debt that becomes payable after a year (ex. mortgages, long-term lease, warranties, goods sold)
      - Other liabilities
        
        post-retirement benefits
        
        potential liability from pending lawsuits
      - debts
    - - Ownership Equity
        
        owner's net investment in a business after paying off everything
        
        Asset>Liability = Equity is HIGH
        
        Asset</=Liability = Equity is LOW
      - Stockholders' Equity
        
        ownership equity of a corporation (more than one owner/stockholders)
    - - Cash & all assets readily available (has liquidity)
        
        prepaid expenses (ex. insurance)
        
        Accounts Receivable
    - - non-liquid, tangible goods (land, building, equip, improvements such as new carpeting, paint jobs, security sys)