ADMS 4540- Midterm Exam Guide - Comprehensive Notes for the exam ( 51 pages long!)
11 Oct 2017
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Percentage increase (decrease) in sales between two time periods. If overall costs and inflation are increasing, then you should see a corresponding increase in sales. If not, then may need to adjust pricing policy to keep up with costs. Measures the composition of an organization"s revenue sources (examples are sales, contributions, grants). Reliance on revenue source = your market share growing, is there a long term relationship or contract, is there. The nature and risk of each revenue source should be analyzed. Organizations can use this indicator to determine long and short-term trends in line with strategic funding goals (for example, move towards self-sufficiency and decreasing reliance on external funding). Measures the degree to which the organization"s expenses are covered by its core business and is able to function independent of grant support. For the purpose of this calculation, business revenue should exclude any non- operating revenues or contributions.
