From the course: Business Acumen for Project Managers

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Insights on finance and accounting calculations for PMs

Insights on finance and accounting calculations for PMs

From the course: Business Acumen for Project Managers

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Insights on finance and accounting calculations for PMs

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- Money is like the blood flowing through the veins of a business, accountants and financial analysts use a range of calculations to diagnose whether a business is healthy and whether projects make sense. In this video, we'll talk about how financial professionals look at a business and how these insights can be useful for you as a project manager, one way that a business or a project can be evaluated is based on how much it costs to run. And it's often useful to look at the costs in three specific categories, the operating expenses, OPEX, are the costs related to running the business or the project, the capital expenses, CAPEX are the costs for investments in equipment that you need to buy. And the cost of goods sold, the COGS, is how much money you spend to produce the products you sell. Each of these cost buckets, OPEX, CAPEX and COGS tells you something about how efficiently a business is using its money. The…

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