People that are not tied directly to the cost of producing a unit--administration, salespeople, managers for example.
Contribution Margin - Period Costs
Put simply, it is what the product contributes towards profits.
In the real world emergency loans do not exist. When you run out of cash, you have "a liquidity crisis", "Chapter 11", or simply "Bankruptcy" on your hands.
Current Assets - Current Liabilities
Current Assets / Current Liabilities = (Cash + A/R + Inventory) / (A/P + Current Debt)
Days of Working Capital
Working Capital / (Sales/365)
Your ability to forecast demand, build adequate inventories to satisfy demand, and yet not accumulate excessive inventory
Driven by your promo budget, creates product awaremeness before customers shop. If customers are not aware of the product, they will not buy.
Driven by your sales budget. It examines the question, "How easy is it for customers to work with you during and after the sale?"
the productivity of your workforce through the course of the simulation.
Financial Structure Category
Financial structure of your (a) company--its relationship between debt and equity. (Liabilities, or debt vs. stockholder's equity)
Total Assets / Total equity (according to CapSim)
The property, plant, and equipment of "the Company," and they are listed on the left side fo the balance sheet.
Liabilities and Owner's Equity
the right side represent the people who paid for he Assets and their current stake (on those assets)
The Financial Structure of the firm is the relationship between _____ and _____. The relationship is called "______" because stockholders are matching their equity with debt to create a bigger company.
Debt and Equity. "Leverage"
Sides of the Balance Sheet
The left is "what is owned," and the right is "who owns it."