Ashraf S. Youssef,, Ph. D.

Senior Member, ASQ

Quality Assurance Manager
1.
1 DVC Direct Variable Cost
Costs that are directly charged to the goods and
services sold. They are composed by: Material
Cost,, Direct labor and Direct Expenses.
p

2. MBC Manufacturing Based Cost

It includes all costs related to the production but
can not be directly traceable to a specific
product/project, i.e., Plant management cost,
maintenance cost,…
3 SFC
3. Structure Fixed Cost
Necessary fixed cost to run a company. They can
be further split into 2 categories; CBC:
Commercial Based costs;; All costs related to sales,,
marketing, and commercial engineering which
objective is to develop sales and promote; and
ABC: Administrative Based Costs; Costs related to
the company administration and general
management (HR, Admin, Finance, IT, QA, and
GM)
1. Current Assets Could be Liquid immediately
Cash in Banks
Accounts Receivables
Inventory
-Stock
-WIP
-Finished
Finished Goods
-Goods in Transit (GIT)
Prepaid Expenses
-Insurance
-Rent
R
2. Fixed Assets Building
Machines
Furniture
IT
Loss Depreciation
Net Value
Total Assets Current + Fixed
3. Liabilities Short Term
Accounts payables to vendors
Banks & Drafts
Liabilities to inter Company
Long Term
End of Service
Loans
4. Partners Equity Capitall
C
Profit
Dividends
Total Liabilities Liabilities + Partners
Equity
Balance 0
1.
1 Sales
2. Cost Cost of Sales
-Direct Cost (Material, MBC)

Gross profit
SFC (Admin, HR, Finance, QA)
Depreciations
p Value
Operational Profit
EBIT
Interest
Taxes

Net Profit
1. Current Ratio Current Assets / Current Liabilities

2. Current Quick (Current Assets – Inventory)/current Liabilities

Ration
3. Net profit Return - Based on Sales Profit/Sales

4. Return on Equity Profit/Equity

5. Return on Assets Profit/Assets

6. DSO: Days
y Sales outstanding
g (
(Net Rec. Average
g
/Monthly Average
sales) * 360
7. DIN Days in Inventory ((Inventory + WIP +
GIT)/Monthly Avg.
COGS) * 360
8. COGS Cost of Goods Sold DVC +MBC
9. DVC Margin Sales - DVC

10. GM Gross Margin Sales – COGS

11. EBIT Earning Before Interests GM - SFC

& Taxis
12. Backlog Booking YTD
YTD-Invoicing
Invoicing YTD

13. OWC Operation working Inventories + WIP +

Capital Receivables -
Payables