成本时间管理CostSchedPart1.pdfVIP

Cost and Schedule Management Larry M. Joseph, Ph.D. June 2002 Financial Background Financial Decisions of Firms ? Business Firms –entities whose primary function is to produce goods and services –they vary widely in size from part-time businesses run from a spare room, to giant corporations (e.g. Mitsubishi or General Motors) with hundreds of thousands of employees, and an even larger ownership ? Strategic plans specify the business the firm is in –strategic plans may change radically over time –the firm ’s business may be defined in terms of a group of products, technologies or customers 3 June 2002 ? LMJoseph 2002 Financial Decisions of Firms The Capital Budgeting Process –The preparation of a plan for acquiring factories, machinery, research laboratories, show rooms, warehouses, and human assets to implement the strategic plan –The basic unit of analysis is the investment project . Investment projects are identified, triaged, and implemented in the capital budgeting process June 2002 ? LMJoseph 2002 4 Financial Decisions of Firms The Financing Process –Once a new set of approved projects has been identified, it must be financed with retained earnings, stock, bonds, et cetera –Capital structure is the amount of the firm ’s market value allocated to each category of issued securities. It determines ownership and risk level of the firms future cash flows –Capital structure ’s unit of analysis is the firm as a whole (not