This chapter explains and illustrates financial modeling. Financial modeling can: Provide an overview of an organization’s financial activities, help managers make specific decisions; financial modeling relies on concepts of fixed and variable cost behavior. | Financial Modeling for Short-Term Decision-Making CHAPTER 6 Managerial Accounting 11E Maher/Stickney/Weil PowerPoint Presentation by LuAnn Bean Professor of Accounting Florida Institute of Technology © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Chapter 6: Financial Modeling for Short-Term Decision-Making CHAPTER GOAL This chapter explains and illustrates financial modeling. Financial modeling can Provide an overview of an organization’s financial activities Help managers make specific decisions Financial modeling relies on concepts of fixed and variable cost behavior. ☼ ☼ This chapter explains and illustrates financial modeling. Financial modeling can: Provide an overview of an organization’s financial activities Help managers make specific decisions Financial . | Financial Modeling for Short-Term Decision-Making CHAPTER 6 Managerial Accounting 11E Maher/Stickney/Weil PowerPoint Presentation by LuAnn Bean Professor of Accounting Florida Institute of Technology © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Chapter 6: Financial Modeling for Short-Term Decision-Making CHAPTER GOAL This chapter explains and illustrates financial modeling. Financial modeling can Provide an overview of an organization’s financial activities Help managers make specific decisions Financial modeling relies on concepts of fixed and variable cost behavior. ☼ ☼ This chapter explains and illustrates financial modeling. Financial modeling can: Provide an overview of an organization’s financial activities Help managers make specific decisions Financial modeling, a simple but appealing tool, provides a sweeping overview of an organization’s financial activities or can help managers make specific decisions. Financial modeling relies on concepts of fixed and variable cost behavior. FINANCIAL MODEL Financial modeling enables analysts to test the interaction of economic variables in a variety of settings. It requires analysts to develop a set of equations that represents a company’s operating and financial relations. LO 1 A financial model, which works in much the same fashion as a simulator, enables analysts to test the interaction of economic variables in a variety of settings. These models require that analysts develop a set of equations that represent a company’s operating and financial relations. Financial models offer several benefits to users. Once the model is developed, analysts can use it for business purposes without becoming overwhelmed by the related number crunching. Like the simulators just discussed, many models allow an .
