business_knowledge.txt•1.91 kB
Business Terms and Definitions:
Earnings: Total revenue generated by a department or company in a given period, including all income sources.
Sales: Revenue from direct product or service sales to customers.
Expenses: All costs incurred in running the business including salaries, overhead, and operational costs.
Profit Margin: Percentage of revenue that remains as profit after expenses, calculated as (earnings - expenses) / earnings.
Quarter: Three-month business period. Q1 is January-March, Q2 is April-June, Q3 is July-September, Q4 is October-December.
Department: Organizational unit within the company (Sales, Marketing, Engineering).
Employees: Number of full-time staff in a department.
Company Policies:
Budget Allocation: Marketing gets 25% of total budget, Engineering gets 30%, Sales gets 45%.
Performance Metrics: Sales departments are evaluated on revenue growth, Marketing on lead generation, Engineering on project delivery.
Quarterly Reviews: All departments must submit quarterly reports by the 15th of the month following quarter end.
Expense Approval: Expenses over $10,000 require VP approval, over $50,000 require CEO approval.
Hiring Policy: New employees require department head approval and HR review.
Revenue Recognition: Revenue is recognized when services are delivered or products are shipped.
Financial Reporting: All financial data must be reported in USD and reconciled monthly.
Business Analysis Guidelines:
When analyzing earnings, consider seasonal trends and department-specific factors.
Correlation analysis should focus on relationships between sales, employees, and expenses.
Linear regression models should use at least 3 quarters of data for reliable predictions.
Standard deviation helps identify departments with consistent vs variable performance.
Average calculations should be weighted by department size when comparing across departments.