Analysis of References on Business Finance and Costing Methods for Dysonica Plc

This article provides an analysis of various references on business finance and costing methods for Dysonica Plc. It covers topics such as the importance of liquidity, cost reduction strategies, and cash flow management. The references used in this article provide insights into the impact of COVID-19 on business finance, the relationship between carbon emissions and tourism growth, and the use of absorption costing in manufacturing industries. The article also discusses the significance of accounting and finance in the competitive world and the role of Islamic social finance in saving, investing, and borrowing funds for business growth.

Reference:
Schoenmaker, D. and Schramade, W., 2018. Principles of sustainable finance. Oxford University
Press.
Draft:
Business finance refers to the amount that is raised, arranged and managed by the business
organizations for the purpose of meet the firm’s requirements. In can also be defined as the funds
availed by the businesses to commence a business
Justification:
The above reference built an understanding regarding what is finance and what principles the
business needs to follow in order to maintain liquidity of funds in their business structure. This
will be used to define the meaning of business finance in the context of corporation along with
its importance to an entity for longer period of time.
Reference:
Kells, S., 2020. Impacts of COVID-19 on corporate governance and assurance, international
finance and economics, and non-fiction book publishing: some personal
reflections. Journal of Accounting & Organizational Change.
Draft:
The firm uses this money to acquire assets, purchase raw material, to produce a commodity and
other operational activities. When the company start its business, then the capital introduced by it
is not enough to meet each and every need of an enterprise
Justification:
The above reference built an understanding regarding usage of funds in the organisation on
different business processes so that allocation could be made in structured way because after
Covid 19 there is a limitation in terms of resources that the business is being utilising. Therefore,
it is essential for them to make proper allocation.
Reference:
Xu, Z., and et.al., 2020. Analysis of the environmental trend of network finance and its influence
on tradition
Draft:

The third task encompasses the projections of cash flow of Dysonica Plc till April 30, 2023. And
the last task talks about the analysis on the achievements and accomplishments of the company
and how it is performing in that particular industry
Justification:
The above reference allows me to carry comparative study regarding different cost method that
are being implemented by Dysonika Plc and on the basis of which the recommendation has been
given to them for selection based on cost they incurred in different models. Network finance
gives me an idea to link different methods used for calculation of cost so that selection could be
made accordingly amongst them.
Reference:
Abosedra, S., and et.al., 2021. Financial development and business cycle volatility nexus in the
UAE: Evidence from non‐linear regime‐shift and asymmetric tests. International
Journal of Finance & Economics.
Draft:
Cost is the term which is used in manufacturing and supplying of goods or services. In
production cycle, cost is very important at every level from acquiring raw material to finished
goods of an organization. Basically cost is the amount of money that helps to cover the expenses
related to production. There are several types of expenses which effect the company but
generally two types of expenses that make difficulties in production of goods are variable cost
and fixed cost
Justification:
With the help of above reference to understanding the meaning of financial development to any
business. This allows me to gain understanding about how cost plays the vital role in the success
and failure for an entity. How the final price of product depends upon the cost which is incurred
to manufacture that product? It gives me the idea about cost and therefore I used the same in
explaining the cost and its purpose to business.
Reference:
Akadiri, S.S., and et.al., 2021. Environmental Kuznets curve hypothesis in the case of tourism
island states: The moderating role of globalization. International Journal of Finance &
Economics, 26(2), pp.2846-2858.
Draft:

Fixed cost is a cost which is always same even when fluctuation in selling and production of
goods and services
Justification:
With the help of above reference I have developed an understanding about the relationship
amongst carbon emission and tourism growth in the changing world. That provides me an
understanding regarding how tourism and hospitality sector are facing difficulties as they are not
able to cover their fixed cost. I have gained an understanding regarding the fixed cost from the
above reference that whether units are produced not, an entity need to beer such cost throughout
the financial year.
Reference:
Martino, P., and et.al., 2020. Cryptocurrencies and entrepreneurial finance. The economics of
cryptocurrencies, pp.51-56.
Draft:
It is the cost that cover the method of costing which analyse and accounts whole manufacturing
related expenses. Generally, this factor is used by the business enterprises to absorb the cost of
goods
Justification:
The above reference helped me to develop an understanding about absorption costing as a
method that has been used in costing in order to calculate cost of the final product being
manufactured by organisation. This article allows me to develop an understanding about
cryptocurrencies which is a kind of investment for the business in which the entity deals and it is
essential for the business to record the same in their books of accounts. For this purpose, the
identification of their cost is a vital process which can be dealt with the help of costing method.
Reference:
Ziegler, T., and et.al., 2021. The global alternative finance market benchmarking
report. Available at SSRN 3771509.
Draft:

The absorption costing is generally calculated in the field of manufacturing industries that helps
the firm to compute the cost of goods so that the company could analyse the better cost compute
the amount as well as it is also help to control the price of products
Justification:
The above reference helps me a lot to gain an understanding of capital market and various
securities under which trading has been carried out in stock market. There are various methods to
value these securities at the end of financial year such as dividend valuation model, capital asset
pricing model etc. Similarly, I have gained understanding that absorption costing will not be
applied to every industry. It is specific to manufacturing concern under which cost of goods sold
is being arrived as manufacturing process is going on throughout the production phase.
Reference:
Lewin, P. and Cachanosky, N., 2020. Capital and finance: Theory and history. Routledge
Draft:
It is the costing which use a method in respect of marginal cost where variable cost is charged to
the cost of units and fixed cost of a given period is wholly write down in relation to the
contribution price
Justification:
With the help of above references the understanding has been developed regarding capital used
in the business and role of finance which is utilised as working capital to run the operational
activities of entity. Once an understanding has been built regarding the working capital needs of
the business their cost needs to be considered. Marginal costing records the changes that has
been taken place in cost sheet due to change in level of production which could be seen after
identification of working capital requirement of business.
Reference:
Pillay, S., Rajaram, R. and Ramnanun, K., 2020. Ascertaining the impact of post-commencement
finance on business rescue in Kwazulu-Natal, South Africa. The Journal of Social
Sciences Research, 6(3), pp.236-244.
Draft:
It is cost which is helpful to analyse the cost of production. It is breakdown down overhead cost
among manufacturing based on methods

Justification:
With the help of above reference an understanding has been developed that traditional costing
method are not capable enough to correctly calculate the cost of the final product and services.
That ultimately increases the final price of product which creates burden on consumer as they
have to pay the final price. The above reference provides an understanding that after
commencement of business, the activities are divided into multiple segment. Due to which their
cost allocation method must not be traditional. Therefore, it is essential to input ABC method of
costing so that overall cost of the product which be reduced.
Reference:
Motta, V., 2020. Lack of access to external finance and SME labor productivity: does project
quality matter? Small Business Economics, 54(1), pp.119-134.
Draft:
The pricing of goods is also an important part of activity based costing that directly affect the
company profit
Justification:
The above reference built an understanding that small and medium enterprise plays a vital role
for local economic development. Those industries who are working as SMEs needs to adopt
ABC costing method in order to reduce the cost of their method so that over allocation of fixed
cost could get eliminated. This shows that how price of the product is significant for the business
to retain the market share in the industry in which they are working.
Reference:
Fairchild, C. and Hahn, W., 2020. Accounting and finance majors outperform other majors on
the major field test in business and the Comprehensive Business Exam: An analysis of
exam performance drivers. Journal of Education for Business, 95(6), pp.345-350.
Draft:
There are various methods that a business can adopt to reduce or cut down its expenses and
achieve its desired or the stated objective in methods that reflect on the bottom line in a good
manner
Justification:
The above reference helps me to gain depth understanding regarding accounting and finance and
how they outperform in the competitive world when compare to other streams. This would help

to a lot to gain knowledge regarding the approach an entity developed when they product a
product that is cost effective. If their final product cost is under control, then their margins would
be doubled. Therefore, as an entity it is significantly important to adopt those methods of costing
that reduce the cost of product and services offered by them.
Reference:
Paulet, E., 2018. Banking liquidity regulation: Impact on their business model and on
entrepreneurial finance in Europe. Strategic Change, 27(4), pp.339-350.
Draft:
Cost reduction strategy is the technique that any company adopts to cut down its expenses to
bring an increment in their bottom line
Justification:
With the help of above reference the fact comes to the notice that how liquidity plays the vital
role for any business. Those business whose current ratio and liquid ratio are adverse then they
do not survive in market for longer period of time. Therefore, it is essential for business to either
adopt those strategies that reduce their cost to that their liquidity to maintained as sound enough
to repay their suppliers and creditors on timely manner.
Reference:
Kuanova, L.A., and et.al., 2021. Islamic social finance: a literature review and future research
directions. Journal of Islamic Accounting and Business Research.
Draft:
An income articulation portrays an organization's whole monetary status.
Justification:
The above reference is used to develop an understanding regarding the primary objective of the
business that is saving of funds for future growth, investing of funds to generate income and
borrowing of funds for capital expansion as described under Islamic social finance. This helps
me to ensure that business funds needs to be monitored with the help of cash flow statement.
With clearly indicates the positioning of cash in the form of investing, operating and financing.

Reference:
Gundogdu, A.S., 2019. A modern perspective of Islamic economics and finance. Emerald Group
Publishing
Draft:
The whole infusion of £2,465,187 into the organisation in the primary year is a fantastic
opportunity for organisations because they can be active in a variety of conditions for the
organisation and help Dysonica expand
Justification:
With the help of above reference an understanding has been developed that if funds are being
misused then it is essential for the management to find out the reasons for the same as investment
invest their funds in business with a believe that business objectives are being accomplished over
the period of time as depicted in the above article. This helps me to gain understanding regarding
the flow of resources in the form of inflow and outflow in business that must be monitored in an
adequate manner.
Reference:
Kgoroeadira, R., Burke, A. and van Stel, A., 2019. Small business online loan crowdfunding:
who gets funded and what determines the rate of interest? Small Business
Economics, 52(1), pp.67-87.
Draft:
The very first component of cash flow from operating activities for an accounting period reflects
sales starting from the month of May and ending in April and an increase can be observing in the
twelve months. The forecasted cash flow statements reflect that the company has good and sound
financial position
Justification:
With the help of above reference an understanding has been developed that for small business
how significant would be to earn operating income in a regular course of interval in order to
survive. Further they need regular funds in the form of loans that would be sanctioned only when
their business operates throughout the year. Similarly operating cash flows plays the vital role for
an organisation to meet out their regular business expenses.

Reference:
Zhengxin, W.A.N.G. and Qian, Z.H.O.U., 2019. How Business Environment Affects Chinese
Enterprises' OFDI to Countries along “the Belt and Road”. Collected Essays on Finance
and Economics, 250(9), p.42.
Draft:
There is cash outflow that can be seen in the cash flow statements of Dysonica Plc which can
have indirect impact on the company’s functioning and if this will continue than the it will be a
major challenge for any business who is working in a competitive industry and across the globe
to meet its debt obligations and commitments whether they are short – term or long – term. The
above record or report also gives an insight on the involvement of in the different projects which
is leading to the increasing expenses of Dysonica Plc and these are also giving losses to the
businesses
Justification:
The above reference helped me a lot to gain understanding regarding the impact of business
environment on Chinese corporation. If environment favours the business, then business
activities could be carried out in a smooth manner and if not then they face difficulties in
multiple aspects from time to time. This reference is used in the above statement as an internal
factor that business activities of Dysonica Plc would be affected if they cash flows are being
negative for the longer period of time as they do not meet out their debt obligation on regular
period of time.