Basic finance for marketers (Marketing and agribusiness texts - 1)

Table of Contents

S. Carter
N.J. Macdonald
D.C.B. Cheng

Rome, 1997

This publication has previously been issued as
ISBN 92-851-1002-9
by the FAO Regional Office for Africa.

The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

ISBN 92-5-103965-8

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© FAO 1997

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Table of Contents


Chapter 1 - Introduction to accounting for marketers

Chapter objectives
Structure of the chapter
The marketing financial analysis circle
Activities associated with marketing financial analysis functions
Methods involved in marketing financial analysis
What is analysed in marketing financial analysis
Basic financial analysis methods
Other performance measures
Budgeting and forecasting
Key terms

Chapter 2 - Financial, managerial accounting and reporting

Chapter objectives
Structure of the chapter
The basic principles
Use of the accounting equation to find profit
Manufacturing account
Trading account
The profit and loss account
The balance sheet
Stocks and work-in-progress
The interpretation of company accounts-ratio analysis
The main types of ratio
Other useful ratios
Financial measures of business unit performance
Key terms

Chapter 3 - Cash flow accounting

Chapter objectives
Structure of the chapter
Aim of a cash flow statement
Statements of source and application of funds
Funds use and credit planning
Key terms

Chapter 4 - Budgetary control

Chapter objectives
Structure of the chapter
Budgetary control methods
Management action and cost control
Zero base budgeting (ZBB)
Key terms

Chapter 5 - Information for decision making

Chapter objectives
Structure of the chapter
Elements of a decision
Relevant costs for decision making
Opportunity cost
Shutdown problems
Key terms

Chapter 6 - Investment decisions - Capital budgeting

Chapter objectives
Structure of the chapter
Capital budgeting versus current expenditures
The classification of investment projects
The economic evaluation of investment proposals
Net present value vs internal rate of return
Allowing for inflation
Key terms

Chapter 7 - Sources of finance

Chapter objectives
Structure of the chapter
Sources of funds
Ordinary (equity) shares
Loan stock
Retained earnings
Bank lending
Hire purchase
Government assistance
Venture capital
Key terms