Financial Reporting and Analysis

MEMSCOST is designed to compute the cost structure of a device from an engineering perspective. However, this same data can also provide much of the raw data for simple accounting statements and financial metrics, and MEMSCOST itself converts the engineering cost data into a simple profit & loss statement. These same data options can be used as the basis of an investment business case. This chapter will summarise the role of the key financial statements (it is not intended as a lesson in accounting) and show how MEMSCOST can be used in financial assessments by presenting a simple, illustrative investment business case. Finally, this chapter will look at some key financial concepts.