Financial Decision Making

Financial
Decision Making

Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
CONCLUSION................................................................................................................................6
INTRODUCTION...........................................................................................................................7
TASK 2............................................................................................................................................7
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Financial decision-taking includes the systematic and structured process of choosing the most
suitable and successful option among the multiple alternative course of action relevant to fiscal
operations (Ball, 2013). The main aim or the motto of the project is to include and select new or
creative measures in order to accomplish the company objective, vision and task. Report offers
details on different elements such as terms, report form and use of the management accounting
technologies in the Camden limited. It is the largest retailer and manufacturer of UPVC doors
and windows in the United Kingdom.
TASK 1
Evaluation of the role of accounting and finance:
Overview of company:
In UK, Camden Limited is most prominent manufacturer and distributor of u PVC door,
entrance and windows. Company provides customised layout of windows and door according to
customer’s preference. Company is headquartered in Antrim, Northern Ireland and operates
throughout the United Kingdom. Company's layout and variety of screens, openings are known
for their awkward appearance. Because of its 36 years of experience and unique product
consistency in manufacturing, it has achieved the position. It manufactures and sells long-term
goods that follow safety standards. Recently company made investment in recycling of u PVC
items and give recycling of its old products. Business with its unique ideas and creativity
offering tuff rivalry in u PVC sector (Camden Group. 2019). It has a commodity range that
replaces the changing environment and nature with standard challenging goods. It sells domestic
and industrial goods to the United Kingdom.
Structure of and terms used within the financial statements:
Financial statements include primarily profit or profits or loss accounts, balance sheets or
financial situation analysis and capital adjustment or investment fund adjustment, cash flow
document, etc. The balance sheet arrangement involves equities, investments and other
properties of the proprietor. Accounts reflected in the accounts shall be calculated at a defined
date for both liabilities and properties which includes debt, capital assets, and current year

profits. The shareholder's fund or shares. Liabilities are classified into current liabilities and non-
current liabilities. Assets are also classified as non-current assets, i.e. real securities, fictional
assets, etc. and current assets, like inventory, currency, etc. The sales framework covers total
production, goods sold, gross income, direct and indirect costs, and net income. Revenue figures
mix the income & loss record with trading accounts. Gross profit estimate is shown in the trading
account section. Gross profit is determined by calculating store opening and closing and direct
expenses from the total sales value (Bryer, 2013). Whereas all indirect expenditures and sales are
shown, as in the net profit section. The net profit is determined by all indirect costs excluded
from indirect sales. Indirect costs and profits are benefits and losses that do not directly relate to
core business operations.
Role of management accounting techniques:
The Management Account provides the most important activities that allow
administrators to help employees / officials in the decision-making process by taking knowledge
or aggregations. The whole of system and interested activities of management accounting
concentrates toward more use of particular relevant methods and techniques that to take
smoothness in method of regulating, judgment-making and planning. The main purpose of big
business officials is here to make a significant difference in the key business processes and
effectiveness. For large companies such as Camden LTD accountants or executives use different
methods to achieve the desired processes and work efficiencies of the business. It also helps to
increase and increasing transparency through the organized collection and distribution of money
and tax capital. Companies follow approaches that lay down rules and strategies to enforce
business and management activities. The most widely accepted management accounting methods
include financial planning, cash flow analyses, financial statement reviews, fund performance
accounts, etc. There are multipurpose strategies required to fully establish internal and external
procedures and provide them with output. The following is a summary of various management
techniques:
 Financial Planning- This basically means that companies have certain roles and duties to
project results and to quantify the money and to assess the need for resources by keeping
strategic factors into consideration. It helps to create financial policies and guidance on
the acquisition and control of funds collected from various sources within a business.