Table of Contents
- Dedications
- Acknowledgments
- Preface
- Introduction
Chapter 1: The Engineer's Financial Role
- The Impact of Multimedia Content
- What Are The Cost Elements of the Network?
- Cost versus Revenue versus Income
- Fiscal Understanding: The Engineering Economic Study Is A Decision Tool
- Examples: The Need For Economic Study
- Example 1.1:
- Figure 1.3: Trans Atlantic Company XYZ Balance Sheet
- Example 1.2:
- Example 1.3:
- Example 1.4:
- The Objectives of the Economic Analysis/Engineering Economic Study
- The Engineering Economic Study Processes
- What Engineering Economic Studies Do NOT and Are NOT
- Basic Points
- Summary
- Questions
- Answers
Chapter 2: Basic Telecom Accounting
- Accounting Concepts
- Telecom Accounting Classifications
- Assets
- Intellectual Property: Technology, Software and Content - As Assets
- Liabilities and Owner's Equity
- Balance Sheet
- Shareowner's Equity
- Table 2.1 Telecommunications Carrier Balance Sheet
- Operating Revenues
- Operating Expenses
- Income
- Income Statement
- Relationship of the Balance Sheet and the Income Statement
- After Income: Earnings and Profit
- Summary
- Questions
- Answers
Chapter 3: Capital Expenditures and the Nature of Costs
- Capital Expenditure Policies
- Example 3.1: Capital Expenditure Policies in a Healthy Company
- Example 3.2: Capital Expenditure Policies in an Unhealthy Company
- Capital Expenditure Policy Structure
- Capital Expenditure Policy: Rules and Objectives
- Revenue
- Gross Profit
- Break- Even
- Fixed Capital Investment
- Working Capital
- Income Tax Rate
- Depreciation
- Interest
- Net Profit/Operating Profit
- Rate of Return on Investment
- Payout/Payback Period
- Discounted Rate of Return
- Minimum Return Rate
- Example 3.3:
- Example 3.4:
- Capital Expenditure Policy: Summary
- Cost Expenditures: When Can You or Should You Spend Capital?
- Nature of Costs
- Plant Operation Costs
- Capital Costs
- The Nature of First Costs
- Material
- Installation
- Miscellaneous Loading
- Engineering
- Charges Occurring During Construction Which are Added to the
Plant/Equipment Investment Accounts
- The Nature of Continuing Costs
- Maintenance Expenses
- Depreciation Expenses
- Advertising
- Travel
- Commercial
- Employee Payroll, Pensions, and Benefits
- Rents
- Accounts Payable and Accounts Receivable
- General Administration
- Outsourcing
- Engineers' Outsourcing Concerns
- Cost Expenditure Policies and Capital Expenditure Policies -Harmonization
- Summary
- Questions
- Answers
Chapter 4 - Depreciation
- Attributes of Depreciation
- Intangible versus Tangible
- Example:
- Salvage, Scrap, and Junk Value
- Estimating the Useful Life of the Asset
- Methods of Depreciation
- Straight-Line Method
- Example 4.1: Straight-Line Method
- Example 4.2: Double-Declining-Balance Method
- Sum-Of-The-Years-Digits Method
- Example 4.3: Sum-Of-The-Years-Digits Method
- Example 4.4: The Sinking-Fund Method
- Which Depreciation Method Do You Use?
- Content and Depreciation
- Summary
- Questions:
- Answers:
Chapter 5: Business Planning and Organizational Theory
- Business Plan
- Components of the Business Plan
- Strategy
- Strategic Planning
- Strategic Planning - Market Segment & Size
- Strategic Planning - Value: The Story
- Strategic Planning - Distribution
- Scope and Scale of Execution
- Tactics
- Tactical Planning - Value: The Product's/Service's Intrinsic Value
- Tactical Planning - Value: The Value Proposition
- Tactical Planning - Distribution: Sales
- Equipment and Technology Sales Distribution
- Content Distribution
- Tactical Planning - Distribution: Marketing The Product
- Technology Trials - A Marketing Tool
- Marketing Mobile Content
- Tactical Planning - Distribution: Warehousing and Delivering the Product
- Tactical Planning - Other Aspects
- Vision - Binding Strategy and Tactics
- Where Do Vision, Strategy, and Tactics Lead The Company?
- Organizational Theory
- Basic Organizational Functions
- Basic Telecom Carrier and Vendor Organizational Functions
- Manufacturing and Carrier Organizational Structures
- Content Company Organizational Structures
- Multiple Organization Tracks - Measuring Performance
- Vertical and Flat Organizational Structures
- Organized Product Creation
- Departmentation
- Product Departmentation
- Functional Departmentation
- Product Departmentation versus Functional Departmentation
- Financial Relationships
- Summary
- Questions
- Answers
Chapter 6: Mathematics of Money
- Time is Money and Money is Time
- Interest: Income and Penalty
- Equivalence
- Present Worth and Future Worth
- Annuity
- Example 6.1:
- Example 6.2:
- Time-Value of Money
- Future Worth of a Present Amount
- Present Worth of a Future Amount
- Equipment and Service Value Over Time - Present and Future
- Annuities
- Annuities: Present and Future
- Future Worth of an Annuity
- Annuity for a Future Amount
- Present Worth of an Annuity
- Annuity From A Present Amount
- Rates of Return - Effective and Nominal
- Dispersed Retirements
- Summary
- Questions
- Answers
Chapter 7: Cost Analyses
- Cost Estimation Methodologies
- Order-of-Magnitude Estimation
- Historical Data
- Cost Indexes
- Example: Cost Indexes
- Cost Ratios: Cost-Capacity Relationship
- Semi-Detailed Estimates
- Buffer/Contingency Allowance
- Detailed Estimates
- Cost Estimation - Capital Investment Component
- Depreciable Fixed Investment
- Non-depreciable Fixed Investment
- Expensed or Amortized Investment
- Research and Development
- Engineering/Supervision
- Start-up Costs
- Cost Estimation - Operating Cost Component
- Direct (Variable) Operating Costs
- Indirect (Fixed) Operating Costs
- Summary
- Questions
- Answers
Chapter 8: Break-Even Analysis
- Break-Even Analysis
- Elements of the Break-Even Analysis
- Total Revenue From Sales
- Direct Costs
- Indirect Costs
- Total Costs
- Gross Profit
- Loss
- Break-Even Point
- Example:
- Break-Even Analysis
- Mathematical Representation
- Example:
- Graphical Representation
- Effect of Changes
- The Linear Cost-Volume Relationship
- The Non-Linear Cost-Volume Relationship
- Running a Sensitivity Analysis - Managing Uncertainties
- Certainty, Uncertainty, Risk, and Reward
- Summary
- Questions
- Answers
Chapter 9: Evaluating Investments and Market Driven Strategies - How?
- The Investment Decision Framework and Drivers
- Qualitative Decision Framework
- Quantitative Decision Framework
- Investment Decisions Out of Necessity
- Replacement of Worn-Out and Obsolete Equipment
- Repairs To Buildings and Facilities
- Repairs and Replacements of Equipment, Buildings, and Facilities Due to
Natural Disasters
- Meeting Government Regulations for Health and Safety
- Research and Development
- Security
- Payback Period (PP)
- Payback Period Based on Average Yearly Gross Profit
- Payback Period Based on Average Yearly Net Profit
- Payback Period Based on Average Yearly Cash Flow
- Example 9.1: Payback Period
- Return On Investment
- Example: Return on Investment
- Cost-Benefit Analysis
- Example: Cost - Benefit Analysis
- What Happens If the Quantitative Framework Fails?
- Example 9.2: Break-Even Analysis of an Investment Decision Made Out of
Necessity
- Keeping It Simple
- Integrating The Investment Evaluation with the Market Strategy
- Business Plans
- Components of the Business Plan - Review
- Strategy
- Tactics
- The Investment Evaluation and the Market Strategy - Integration Process
- Taking a Step Back
- Example 9.3
- Integration
- Summary
- Questions
- Answers
Chapter 10: Corporate Planning _ The Art Behind Integrating The Engineering Economic Study and the Business Plan
- rganization - Personnel
- Organizing the Management Thought Processes - Adaptive Planning
- Adaptive Planning Plus Organizational Structure Equals Integration
- Integrating Engineering Economy Study Results and Corporate Planning
- Assessment
- Assessment: Environment
- Assessment: Strengths and Weaknesses
- Assessment: Opportunities and Threats
- Strategic Analysis
- Decision Making
- Decision Making by the Engineer
- Setting Objectives
- Resource Analysis
- The Final Phase - Planning Implementation
- Implementation - The Customer View
- Fundamentals versus Experience
- Summary
- Questions
- Answers
Chapter 11: Project Planning & Cost Control
Chapter 12: Business & Revenue Models
- The Impact of Content on Wireless and Wireline Telecom
- The Conversion of Mobility and The Internet
- The Challenges
- Glossary
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