...Why is it important for an organization to have an eyeball view of its financial performance? Companies need to constantly monitor their performance in terms of finances. Some companies use boards to assist in monitoring the financial activities of their organization. Monitoring corporate performance is a critical function of every board. An effective board monitors the overall performance of an organization, including its operational, strategic, and financial objectives. A key aspect of the board’s oversight role is to actively monitor management’s execution of approved plans, as well as the organization’s progress toward meeting its objectives. It is essential for the board to prioritize and enumerate the organization’s objectives in monitoring its performance. Boards should establish a consistent method for receiving, reviewing, and utilizing the data received. Boards use many data points to monitor company performance, including financial and non-financial metrics, and industry and peer information, which can come from board reports, trend analyses, surveys, financial statements, industry benchmarks, and audit opinions. Knowing which metrics are most effective in understanding performance and indicating potential issues can be challenging, yet beneficial to the organization. Organization’s financial plan typically links to the annual operating plan that has been established. The annual operating plan provides details on the organization’s objectives and how they will be...
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...Wrotham School BTEC Task Sheet Front Cover Name of Centre: Wrotham School Title of Course: BTEC National Subsidiary Diploma in Business Studies Unit Number and Title: Unit 2: Business Resources Name of assessors: Mr Williams Mr Toher Deadline for completion: Statement of Context: At the core of every organization are the human, physical, technological and financial resources that enable it to function. In this unit you learn the importance organizations place on managing their resources efficiently in order to achieve their objectives. Understanding how these resources are managed is one of the keys to assessing how well an organization is performing. The first part of this unit explores the range of human, physical and technological resources for a selected organization. You will investigate the importance of managing these resources efficiently and the contribution that recruiting and retaining suitable staff can make to the organization’s performance. The importance of managing the physical and technological resources efficiently is also explored. The level of an organization’s performance can be seen in its financial statements and the second part of this unit will develop your knowledge and understanding of them and highlight the need for the monitoring and control of costs and budgets. Scenario 1 You have obtained work experience as an assistant in a Recruitment Agency. One of the Agencies more important clients, ASDA...
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...Unit 2: Business Resources (10 Credits) Assessment Sheet Name: ……………………………………………………………………………… | | | | | |Assessment Criteria |Achieved | | |Describe the recruitment documentation used in a selected organisation | | |Pass 1 | | | | |Describe the main employability, personal and communication skills required when | | |Pass 2 |applying for a specific job role | | | |Describe the main physical and technological resources required in the operation of a | | |Pass 3 |selected organisation | | | |Describe sources of internal and external finance for a selected business | | |Pass 4 | | | | |Interpret the contents of a trading and profit and loss account and balance sheet for...
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...` Regent CollegeCollette DivisionL3 BTEC National Business2013/14 | | Student Name | Abdullah Kadiri | UNIT: 2 | Business Resources | Unit Credit value | 10 | ABOUT THIS UNIT | The aim of this unit is to develop learner knowledge of the range of human, physical, technological andfinancial resources required in an organisation, and how the management of these resources can impact on business performance. | ASSESSOR(S) | FBE/MHU | ASSIGNMENT REF: | | START DATE: | 2/12/13 | END DATE: | 15/03/14 | Task 1:P1, P2 and M2 | ScenarioYou are a manager at a local business (your selected organisation) and you have been invited to give a series of two careers talks to Year 11 students about recruitment and selection within your organisation.Your presentation should include the following:P1 * A brief introduction to the business; * A summary of the types of employment within the business; * An explanation of the recruitment process with emphasis on the purpose and contents of job descriptions. This should be supported with annotated examples of job descriptions from the selected organisation; * An explanation of the purpose and content of employment contracts. This should be supported with an annotated example of an employment contract from the selected organisation. * For evidence produce written examples P2 * A description of one specific job within the organisation. This could relate to one of the...
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...to provide information about a business unit for decision making purpose and such information need not to be limited to accounting data. White ratios and other relationships based on past performance may be helpful in predicting the future earnings performance and financial health of a company, we must be aware of the inherent limitations of such...
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...Unit 2: Unit code: QCF Level 3: Credit value: Business Resources D/502/5409 BTEC National 10 Guided learning hours: 60 Aim and purpose The aim of this unit is to develop learner knowledge of the range of human, physical, technological and financial resources required in an organisation, and how the management of these resources can impact on business performance. Unit introduction At the core of every organisation are the human, physical, technological and financial resources that enable it to function. This unit will give learners a broad understanding of the importance organisations place on managing their resources efficiently in order to achieve their objectives. It is important that learners are able to relate their understanding of resource management to a real organisation. This will provide an essential link between theory and practice. Understanding how these resources are managed is one of the keys to assessing how well the organisation is performing. The first part of this unit explores the range of human, physical and technological resources for a selected organisation. Learners will investigate the importance of managing these resources efficiently. The contribution that recruiting and retaining suitable staff can make to the organisation’s performance is examined. The importance of managing the organisation’s physical and technological resources efficiently is also explored. For an organisation to survive its finances need to be sound and secure. The...
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...Management Accounting and Financial Accounting Monitoring and controlling the business financial performances is imperative for the success of the business operations and its profitability. Management and financial accounting have tools that can help the company in different ways when trying to reach their goals. Financial accounting is the business tool that provides reports to the stakeholders, creditors, the government, and other individuals outside the organization and is based on past activities and historical results (Atkinson, Kaplan, Matsumura, & Young, 2006). Financial accounting summarizes information that concerns the whole company, reports are prepared on a regular basis, each report most follow specific guidelines in order to be consistent and it focuses on accuracy. Management accounting in the other hand is the business tool that provides financial and nonfinancial information to internal members of the business such as managers and employees. Management accounting helps internal members of the company with profit planning and budgets. It focuses in making current and future decisions in order to better the company. The reports provided by management accounting are prepared when needed and may not be required in a regular basis. Management accounting helps the company’s Chief Executive Officer (CEO) with controlling the company’s performance by measuring outputs produced and their efficiency. It helps by controlling expenses and costs and by organizing resources...
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...university BUSN 125- Business Math September 3, 2015 Abstract This paper is an analysis of the financial statement of Phillips 66. The researcher will present horizontal and vertical analysis of the income statement and balance sheet among other things. Introduction This paper presents an analysis of Phillips 66 financial statement. Specifically discussed in this document will be the following: Preparation of Financial Statement, Business Problem Solving, Recovery Methods, Indebtedness, Horizontal Analysis, Vertical Analysis, and Ratios and Percentages. The document will conclude with a summary of this discussion. Preparation of Financial Statement Financial statements will give you a clear and accurate visual of how your business is currently performing, so you have a means of monitoring its progress and identifying opportunities for growth. The type of financial statement that lays out the basis for a fortune 500 company like Phillips 66 include a thrall preparation of the balance sheet, income statement, statement of retained earnings, and statement of cash flows; which are the most important steps in the accounting cycle because it represents the purpose of financial accounting statement (Brook, 2013). Ideally the financial statements are prepared by transferring the account balances on the adjusted trial balance to a set of financial statement templates in order to establish a logistical plan for the future well-being of the company. Business Problem Solving A...
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...Management Accounting as tools of daily job routine The hospitality industry consists of broad category of fields within the service industry that includes lodging, restaurants, event planning, theme parks, transportation, cruise line and additional fields within the tourism industry. The hospitality industry is a several billion dollar industry that mostly depends on the availability of leisure time and disposable income. A hospitality unit such as a restaurant, hotel, or even an amusement park consists of multiple groups such as facility maintenance, direct operations (servers, housekeepers, porters, kitchen workers, bartenders, etc.), management, marketing, human resources, property maintenance and finance. The hospitality industry covers a wide range of organizations offering food service and accommodation. The hospitality industry is divided into sectors according to the skill-sets required for the work involved. Sectors include accommodation, food and beverage, meeting and events, gaming, entertainment and recreation, tourism services, and visitor information. Usage rate is an important variable for the hospitality industry. Just as a factory owner would wish to have his or her productive asset in use as much as possible (as opposed to having to pay fixed costs while the factory isn't producing), so do restaurants, hotels, and theme parks seek to maximize the number of customers they "process". Very important is also the characteristics of the personnel working in...
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...Edexcel Level 3 Extended Diploma in Business Harrow High School Unit 2: Business Resources Grade P1 | P2 | P3 | P4 | P5 | P6 | P7 | P8 | P9 | | | | | | | | | | M1 | M2 | M3 | M4 | D1 | D2 | D3 | D4 | | | | | | | | | Overall Grade P | | M | | D | | Deadlines Date Issued: | Date Due: | Date Submitted: Date | Declarations Student: I declare that the work submitted in this assignment is my own work and any resources used have been acknowledged. I understand that false declaration is a form of malpractice. I understand the requirements of this BTEC Level 3 National Certificate in Applied Science. I have been offered constructive feedback and the opportunity to improve my work. Assessor I declare that I have issued the relevant resource material. I ensured that the student understood the requirements for the completion of this course. The student named above completed the work that is submitted and the work is their own. Student Signature | Assessor Signature | Date | Date | Unit 2 – Business Resources At the core of every organisation are the human, physical, technological and financial resources that enable it to function. This unit will give learners a broad understanding of the importance organisations place on managing their resources efficiently in order to achieve their objectives. It is important that learners are able to relate their understanding of resource management to a real organisation...
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...Competition Bikes Inc Written by Administrator Tuesday, 03 July 2012 08:45 - Financial analysis: Company name: Competition Bikes Inc. Activity: Financial Analysis The financial analysis of a business organization involves the complete assessment of the liquidity, profitability, competitiveness and stability of the business. The process is done through using the financial statements of the business. The financial reports are generally presented to top management for purposes of decision making and setting up goals. Analyzing Competition Bikes Inc.’s financial status requires evaluating its internal operations reflecting the horizontal, vertical, ratio, and trend analysis, as well as its working capital. These reviews provide profit margins allowing for projecting any necessary budget restraints in overhead costs and sales potential. Yearly production performance comparisons, based on overhead versus profit, enable a budget projection for ordering production materials on a month-to-month basis. (Shim, J. and Siegel, J. 2009). Horizontal Analysis The horizontal analysis is the study of percentage changes of comparative statements in the case of Competition Bikes Inc.’s years six and seven, and seven and eight. Using the horizontal analysis chart, Competition Bikes Inc., shows the accounts payable, between years six and seven increased as it did between years seven and eight. 1 / 18 Competition Bikes Inc Written by Administrator Tuesday, 03 July 2012...
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...------------------------------------------------- Level 3 Sub Dip/Extended Diploma in Business - Academic Year 2013-14 Candidate | | | Unit No. | Unit 5 ; Unit 2 ; Unit 18 | | Unit Name | Business accounting, Business resources and managing a business event | * | Qualification | Btec Level 3 | | Start Date | September 2013 | | Deadline | November 2013 | | Assessor | Maria Pillay | | Unit 5 – Business accounting | | | Criteria | To achieve the criteria the evidence must show that the student is able to: | Page No. | Achieved? | P1 | Describe the purpose of accounting for an organisation | | | P2 | Explain the difference between capital and revenue items of expenditure and income | | | P3 | Prepare a 12 month cash flow forecast to enable an organisation to manage its cash | | | P4 | Prepare a profit and loss account and balance sheet for a given organisation | | | P5 | Perform ration analysis to measure the profitability and liquidity and efficacy of a given organisation | | | M1 | Analyse the cash flow problems a business might experience | | | M2 | Analyse the performance of a business using suitable ratios | | | D1 | Justify actions a business might take when experiencing cash flow problems | | | D2 | Evaluate the financial performance ad position of a business using ratio analysis | | | Unit 2 – Business resources | | | Criteria | To achieve the criteria...
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...Evaluate the adequacy of accounting ratios as a means of monitoring the state of a business in a selected organisation, using examples. 1.0 Terms of reference In this report, I will be evaluating the adequacy of accounting ratios, so that the owner can keep an eye on what condition is their business in. This will able the business to see whatever they are making profit or making loss. The business which I will particular focus at will be ISIS. Also, this report will include the advantage and disadvantage of using a profit & loss and balance sheet; I will outline the purpose of accounting ratios, plus take in account of the advantages and the limitations of each ratio, I will be also judge on how well the business is doing, and finally, I will conclude this report and give out my recommendation. 2.0 Advantages & limitations of using a P&L and Balance sheet for ISIS 3.1 Profit and loss account A profit and loss account gives us an overview on how well or bad the business has done with their finance, it will also include a record of their profit and loss. To make it even clear, it is a financial statement that summarises the revenue, cost and expenses of the business during the financial year. If the business has made profits, they will remain the same on their trading performance or if they eager to make more profit, they have to try to figure out something new to bring the business to another level. However, if the business has a made a loss, they...
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...“SAC’s Performance Analysis for 2010 and 2011” To: Dakota Cole Chief Executive Financial Officer (CEFO) From: Business Financial Analyst Date: Re: SAC’s Performance Analysis for 2010 & 2011 Message: As part of our efforts to ensure that we get closer and closer to our main objective of expanding our operations, I have performed a Performance Analysis for both the 2010 and 2011 fiscal periods (Colorado Technical University Online, 2012). The Managerial Accounting information collected helps the internal users to use strategic planning, and operate efficiently while evaluating the performance of all areas within the company (Atkinson, Kaplan, Matsumura, & Young, 2012). This allows them to have a better handle on the operations. Thus, allowing for a more informed decision making process (Atkinson, Kaplan, Matsumura, & Young, 2012). Previously, the managerial accounting financial information was just expressed in monetary denomination (Accounting for Management, 2012). Now it has led to include any information that is considered valuable operational or physical information (Colorado Technical University Online, 2012). The performance of a new product, and how well-trained an employee is or how satisfied a customer are all good examples of the nonfinancial information needed to make better decisions (Colorado Technical University Online, 2012). The amounts of processing...
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...2005 was at 3.2% of revenue which gets distributed to investors or to the company. However, in 2006 this % dropped to 2.8% and then increased again in 2007 to 3.6%. The issue with this is that in 2006 there was less money to distribute to investors or within the company but in 2007 there was more than there has been in 2005 and 2006 to distribute out. Smallwood’s interest in 2005 was £46,000 and then this went up by £8,000 in 2006 to £54,000. In 2007 this number increased again by £7,000 to £61,000. This is an issue because Smallwood are paying more interest each year which looks bad on the company. This could be because they are behind on loan repayment or the APR% may have increased. Related to this is the interest cover ratio. In 2005 this ratio was 1.5% and in 2006 this figure decreased to 1.3%. In 2007 this figure went up marginally to 1.4%. This is an issue because the decrease in 2006 and 2007 meant that Smallwood had less money to cover interest payments and therefore less money to keep for themselves. In 2005 Smallwood’s...
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