Business Finance - Assignment
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Added on 2021-01-02
Business Finance - Assignment
Added on 2021-01-02
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BUSINESS FINANCE
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1PART 1............................................................................................................................................11 Ascertaining the purpose for preparing budgets and to help in developing business model12 Determining the important cost drivers for business as well as identifying the traditionalbudging approaches................................................................................................................23 Analysing the importance of traditional budgetary system for future plans.......................3PART 2............................................................................................................................................44 Identifying the appropriate budgeting methods and ways to improve the traditionalapproaches..............................................................................................................................45 Potential application of various budgeting methods...........................................................66 Ascertaining the fruitfulness of appropriate methods to company......................................7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
INTRODUCTIONTo ascertain the financial needs of the business such as availability of funds, costsincurred in each operations as well as revenue gained in each activities will be administered andmanaged properly. In present report there will be a discussion on TownScape Plc as internationalmanufacturer of street furniture. Moreover, there will be ascertainment of various budgetary andcosting system which in turn will be helpful in managing business operations as well as meetrequirements of entity at the required time. However, there will be comparison with thetraditional methods of budgeting and the current techniques. Thus, report is based ondetermining suitable budgeting techniques which will be adopted by business as to haveprofitable growth in the future.PART 11 Ascertaining the purpose for preparing budgets and to help in developing business modelTo set up an appropriate business model there will be fruitfulnesses of budgetarytechniques in implicating suitable changes into business operations. Therefore, budgeting systemhelps in analysing the cost over each activities as well as it also sets limits which will be helpfulin meeting the goals of firm. The main motive of preparing the budget is that there will be properrecords of all the business transaction as well as management of proper work. Thus, it helps inmanaging the financial health of the organisation which will be relevant with operationalpractices and budgetary techniques that will be helpful in meeting the financial needs of entity.To have plethora of knowledge, there is need to have implication of effective budgetarytechniques in TownScape Plc. Thus, it will be determined as:Forecasting the income and expenditure: It is the most important and adequate businessplanning technique in terms of managing costs and revenues for a period. However, inrelation with analysing the income and expenses of business in each department and unitswhich will be helpful in determining the profitability of such activities in the long run.Thus, it provides a model which recognised how a business will perform in the proposedtime period (Purpose of Budgeting, 2017). The income generated from each departmentsuch as manufacturing, purchasing the material as well as managing operations of entityin the long run will have effective development of operational efficiencies.1
Decision making tools: These reports helps in determining the business operations whichin turn will be helpful in executing the business activities as well as making effectivedecisions. Professionals at TownScape Plc need to implicate such technique which in turnwill be assistive in terms of analysing the business goals and managing the operations(Kraemer-Eis and et.al., 2017). Thus, it will act as a funnelling agent which in contextwith facilitate the adequate control over the expenditures as well as suggest thealternative ways to control industrial costs.Administration of business performance: The past records and the actual gains in thepresent time help in analysing the requirement of the business in the current time.However, it will be motivating and the effective technique in improving the businessperformance or efficiencies (Canales, 2016). Thus, it brings ability to think and forecastthe better and accurate plans for the future costs and expenses in a particular activity.2 Determining the important cost drivers for business as well as identifying the traditionalbudging approachesTo improve the financial health of any entity there has been various costs drivers whichin turn will be satisfactory to meet the suitable cost requirements in business (Cole, 2013).However, there will be appropriate increment in the revenue and administrative control over theexpenditure of business.Importance of cost drivers:There will be proper contribution to the relevant business factors which in turn will beeffective and helpful as to meet the adequate requirements of fund in a time. However, there wille various costing techniques which in turn facilitate the appropriate information relevant with thecost incurred over labour, material and the overhead expenses (Bostan, 2014). Thus, the motiveof such costing and budgeting techniques is to ensure the administration of variable expenses inthe operations.Cost budgeting:This is the best cost driver which is needed to be implicate by TownScape Plc which inturn will be beneficial as to have the adequate control over the expenses of the business. It willbe helpful in managing the cost of each industrial activities such as purchasing material,2
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