Finance Assignment: Financial Accountability Assignment
Added on -2020-06-06
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FINANCIALACCOUNTABILITY
Table of ContentsINTRODUCTION...........................................................................................................................1FINANCIAL ACCOUNTABILITY................................................................................................1(1) Net income statement after tax..............................................................................................3(2) Break-even analysis in units..................................................................................................4(3) Break even analysis in monetary value.................................................................................5(4) Desired sales in units.............................................................................................................6(5) Desired sales in Monetary value............................................................................................6(6) Margin of Safety sales...........................................................................................................6(7) Calculation of how many units must be sold to earn a profit after tax of €5,000,000..........7(8) Projected income statement and break even analysis for the year 2019...............................7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
INTRODUCTIONFinancial accountability is considered as viability and relevance of financial andaccounting records of an organisation. Accountability is considered as ethics, governance andblameworthiness, liability and the prospect of accounts giving (Davies and Polverari, 2011).Financial accountability indicates towards acknowledgement and assumption of responsibilityfor actions, products, decision and policies. This report is contains financial accountability of OlaPlc largest manufacturer of an oil based product. Budget control and effective managementcontrol and accountability defined in this context. Management accounting techniques aredefined subject to financial issues and reasons.FINANCIAL ACCOUNTABILITYFinancial accountability is a concept about respective accountability with in a financialprocess. This helps to maintain a string effective and efficient divisional financial controlenvironment. This helps to understand the aspects of financial management and control with inan organisation. Bifurcation and classification of roles and responsibilities and liabilities amongorganisational departments and divisions is one of the key aspect of financial accountability.With the help of financial accountability concept managers and employees become ensure eachposition and important role in financial process (DeJarnatt, 2013). Desired and eligible personsare appropriated and allocated financial position and roles for effective and better performance.Financial accountability provides relevant information and data subject to better financialcontrol and management. It reduces the level of errors and control in respect of effectivemanagement and operation. Financial process helps to maintain strong effective departmentalfinancial control and environment. Moreover, it prevents misappropriation and fraud in businessdepartmental financial process. Financial process of organisation would be able to produceappropriate and accurate information in order to attain financial expertises and control. A welldesigned and perfect financial accountability structure serves the foundation for buildingeffective financial process with in organisation and business.It is basically remain associated with governance and ethical structure of havingdelegated authority subject to specific person and individual. There is a specific rules and regulations are made in respect of operation and process ofaccountability, financial process and activity. 1
The board of regents is considered as measurement tool for the successful managementand operation of financial process.Financial accountability of OLA PlcOLA plc is Ireland's largest manufacturer of an oil based products. Organisation need toevaluate the financial accountability by implementing rules and financial principles and rules forbetter evaluation. Oil based product is produced by organisation itself. “Bottlenecks” is theproduct which is produced by organisation. Packaging and labelling of products are also done bycompany itself in single tin size. Products are sold to both in supermarket chain and small retailoutlets throughout the Ireland. Organisation use cost leadership model to manage the cost ofproducts and operations. Cost is one of the essential aspect which plays vital role in financialplaning and accountability. There is an analysis done subject to evaluation the financialperformance of OLA plc.Managing directors wants to explore the business at global level in order to achieveglobal advantages. Globalisation on market that has few barriers subject to exploringorganisation at large level Cost leadershipCost leadership is a concept which helps to analyse cost of product in terms of projectssuch at cheapest manufacture. This concept remain centralised around comprising the cost ofoperation and production to measurement of profitability. There are some essential aspects areconsidered to evaluate effective and better options for cost control (Cost leadership, 2018.).Organisation and businesses adopt this strategy to resolve financial and non financial aspectswhich remain associated with manufacturing and production process.This is a part of market strategy which is basically used by organisations to makecompetitive strategies and plans for better forecasting. Attracting customer attention subject toproducts and services is one of the essential aspect which is considered in cost leadership. Incompetitive market environment it become difficult to make effective market strategy forsustainable growth. This concept is basically used at senior level management and leadershipdepartment. The management team put efforts towards reducing cost and increasing sales recordsand graphs. By enhancing profitability does not mean that organisation compromise with productquality. There is an optimum level of quantity and quality measurements are used to maintain2
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