Q.1 While preparing a financial model what are the assumptions we need to take. This is where all the costs of the company are collated and expressed in the per unit form. To learn more, launch our financial analysis courses! Financial markets create an open and regulated system for companies to acquire large amounts of capital. [Download the financial model template at the bottom of this article]. The cost function equation is expressed as C(x)= FC + V(x), where C equals total production cost, FC is total fixed costs, V is variable cost and x is the number of units. Remember our cost function: First; managers must set a plan, then organize resources according to the plan, lead employees to work towards the plan, and finally, control everything by monitoring and measuring the effectiveness of the plan. There are twin objectives, namely, profitability and liquidity of funds. The accountant should not only know but he should understand. Explaining the Formula Elements . The course is excellent to understand. The functions of managerial Robert Kaplan is regarded as the founder of the theoretical principles of activity based costing within the cost … This probably explains the ambivalence among respondents toward changing the governance model for finance because of the global economic turmoil. What is an array function, and how would you use it? If a firm has a production function Q=F(K,L) (that is, the quantity of output (Q) is some function of capital (K) and labor (L)), then if 2Q