BASIC FINANCIAL CONCEPTS

Consequently, product managers need to establish a framework of financial plans, budgets, and controls related to their products, services, and customers in order to be able to make sound decisions. The starting point is a foundation of financial and managerial accounting which makes it possible for product managers to better understand the profit contribution of their offerings so that decisions on product rationalization, pricing, and product-line management can be made intelligently. From a broader financial perspective, product managers should understand key ratios and concepts that are drawn from an understanding of financial statements. And finally, they should understand finance as it relates to pricing decisions. While product mana....