Accounting for Strategic Management and Control - Assignment

Added on - 21 Apr 2020

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Running head: ACCOUNTING FOR STRATEGIC MANAGEMENT AND CONTROLAccounting for strategic management and controlName of the studentName of the universityAuthor note
1ACCOUNTING FOR STRATEGIC MANAGEMENT AND CONTROLIntroductionCFC Technologies (CF) is involved in the business of producing the tablet computersthat are of high end technologies and delivers the consulting related services. Theheadquarters of the company is operated from Singapore and the company is largely fundedthrough the venture capital. Owing to the growth in markets all over the South East Asia, it isexperiencing high growth in revenue in the current years. The main business of the companyis carried out in consulting services (CS) and another is in the manufacturing of Tabletcomputers (TCM). The most part of the company’s earnings and revenue are generated fromthese services.It is found from the expenses and revenue compilation statement that the total revenueof the company for the accounting year ended 2014 amounted to $ 77,727 whereas for theaccounting year ended 2015 the revenue amounted to $ 82,391. Therefore, there was anincrease of revenue by 6.00% for 2015 as compared to the year 2014. Further, the totalrevenue of the company for the accounting year ended 2015 amounted to $ 82,391 whereasfor the accounting year ended 2016 the revenue amounted to $ 81,567. Therefore, there was adecrease of revenue by 1.00% for 2015 as compared to the year 2014. The company believesthat world is better place while the technology is utilised for assisting the businesses andpeople in effortless communication (Azhar & Lin, 2017). Further, it makes thecommunication more reliable, faster and easier for the customers and at the same time delivervalues to the shareholders.Performance of the companyIf the profit of the company is considered for the last 3 years that is 2014, 2015 and2016, it is identified that the profit is in increasing trend over 2014 to 2015 and it was
2ACCOUNTING FOR STRATEGIC MANAGEMENT AND CONTROLincreased by 6.01%. However, the profit over 2015 to 2016 has been reduced by 14.15%.Therefore, the profit generating ability of the company is reducing over the years. On theother hand, if the total cost is considered, it can be identified that the total cost of thecompany is increased over the tears from 2014 to 2015. However, the total cost of thecompany has been reduced over the year 2015 to 2016. Therefore, it can be said that thecompany’s ability to generate sales as well total cost has been reduced over 2016 to 2016.RevenueParticulars20142015Change+/-20152016Change+/-Sale of goods$77,000.00$81,620.006.00%$81,620.00$80,804.00-1.00%Sales of services$727.00$771.006.05%$771.00$763.00-1.04%Total revenue$77,727.00$82,391.006.00%$82,391.00$81,567.00-1.00%% of sales of goods tototal revenue99.06%99.06%99.06%99.06%% of other sales ofservices to totalrevenue0.94%0.94%0.94%0.94%Total100.00%100.00%100.00%100.00%The total revenue of the company includes two items like sale of goods, for instance,the sale of tablet computers and sales of services, for instance, the consulting services. It canbe identified from the above figures that the revenue from selling of goods of the companyconstitutes a big part and accounts for 99.06% for all the years over 2014, 2015 and 2016.However, the revenues from sales of services constitute only a negligible part that is only0.94% for all the three years (Krishnan et al., 2014).CostParticulars20142015Change+/-20152016Change+/-
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