Sunday, March 20, 2016

Week 10 Reading reflection

Week 10 reading reflection


The biggest surprise to me was the break-even analysis, but it wasn’t overwhelmingly surprising. It makes sense that there’s a decision-making tool that tells how many units need to be sold in order to figure out when a company is in the clear.
What kind of confused me was how the ratio analysis could be measured with a vertical or horizontal analysis. How does one analysis tell you the strength and weaknesses, while the horizontal analysis only shows you whether it’s decreasing or increasing? 
I guess if I had two questions, it would be like the ones I would ask about the ratio analysis. How does one analysis tell you the strength and weaknesses, while the horizontal analysis only shows you whether it’s decreasing or increasing? 

I don’t think there was anything the author was wrong about. The budgeting process makes a lot of sense. The balance, income and cash-flow statements make sense to me. 

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