MANAGEMENT INFORMATION SYSTEM / BUSINESS MANGEMENT REPORTS
A Economic Result Categories:
Through MIS, we get the exact picture on the results of all of our Business (sales) & Administrative (non sales) Operations, either Month by Month or Cumulatively.
Every Integrated Automotive Dealership’s Operations break down into the following Economic Result Categories:
- 1. Revenues: Revenues are generated from all the departments participating in the Commercial Circuit (New & Used Car Sales, Car Service, Auto Parts and Other Activities that generate income, such as Car Rentals etc.)
- 2. Expenses are divided into two categories:
- Expenses linked directly to the Commercial Circuit’s Revenue Generating Activities (Expenses on Purchasing Goods to be Sold)
- Administration & Management Expenses (All other expenses besides purchasing goods to be sold, such as Salaries, Rent, Electricity, Maintenance Costs, Fixed Asset Acquisition etc.)
- 3. Fixed Asset Depreciation:Fixed Asset is a long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be consumed or converted into cash any sooner than at least one year's time.
Fixed Asset Depreciation is the expense generated (loss in value) by the prevailing economic condition of the fixed assets and the existing Accounting Guidelines and principles implied in the organizational policies.
B Cost Centers:
In business, a Cost Center is a division that directly adds to its operating cost and indirectly adds to its profit. Typical examples include Sales Channels and Administration. Of course, the analysis can be infinite, since within a Cost Center, such as Administration for example, some Sub - Cost Centers can be integrated, such as Research & Development or Marketing.
There are some significant advantages to classifying simple, straightforward divisions as Cost Centers, since cost is easy to measure. Business metrics are employed to analyze the weight coefficients of each Cost Center in relation to the costs and benefits of the business as a whole.
In an Integrated Automotive Dealership, the following Cost Centers are sufficient in covering all aspects of its operations:
- i. Brands
- ii.Sales Channels
- iii.Item Categories
For example, our Car Sales Results are divided by a use of various allocation keys to Brands (Fiat, Alfa Romeo, Lancia etc.), to Sales Channels (Showroom Sales, Mediator Dealer Sales, Cars e-Shop etc.) and to Item Categories (Punto Family, Oil Filter Family, Brake Pad Family etc.).
- 4. Administrative Administrative C.C. pertains to all Various Expenses necessary to operate our business, such as Personnel Salaries, Mediator Dealer Remuneration, Customer Call Center Costs, Network Expenditures, Secretarial Support etc., that need to be allocated to our Branches, Brands and Sales Channels.
C Administrative Cost Allocation to Cost Centers:
Administrative Costs, such as payroll, facility rentals, electricity bills etc., through business metrics should be properly allocated to Cost Centers, by Brand, Sales Channel and Administration Branches.
The only Cost Center, which is not affecting nor affected by Administrative Costs is the Item Category, which is solely attached to the Commercial Activity Circuit.
Through MIS, we get the exact picture / results of all of our Business & Accounting Operations, either Month by Month or Cumulatively.
These Results are directed and filtered through Cost Centers, which are the Profit / Cost Margin weight coefficients that characterize each field of our operations.
By directing our Business Results (Revenues – Expenses – Depreciations) through a series of combinations of various Cost Center Allocation Matrices, we can get a great multitude of Business Management Reports that can cover every aspect of our operations.