Management of Financial Resources & Performance
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Added on 2019-12-18
Management of Financial Resources & Performance
Added on 2019-12-18
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MANAGEMENT OF FINANCIAL RESOURCESAND PERFORMANCE
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1Identification of the strategic decision and its strategic significance..............................................11.1Impact of decision on organization financial statements and relevance of this impact ondecision........................................................................................................................................12.3 Role and limitation budget in managing and contolling expenditure and approaches toderive value through better budgeting.........................................................................................1Evaluate the strategic decision using strategic investmentahd financial appraisal..........................26.3 Evaluate strategic investment opportunities and financial appraisal strategic proposal........2Critical evaluation and applicationof the additional five chosen learning outcome........................43.1,3.2 and 3.3 Appraising role of activity based approach and strategic managementaccounting in analyzing decision.................................................................................................44.1Management and allocation of resources and gap between need and availability resultingfrom decision...............................................................................................................................54.2 Identify and map processes and activities of an organization...............................................65.1 Debate the tension between financial and strategic objectives..............................................77.1 Identify the financial risk in an international market.............................................................77.2 Appraise international investment decisions.........................................................................87.3 Evaluating financing options for multinational and overseas subsidiaries............................88.1 Identifying types and sources of risk for organization..........................................................88.2 Techniques to manage and evaluate risk...............................................................................98.3 Prepare and utilize risk management reports.......................................................................10CONCLUSION AND RECOMMENDATION............................................................................10REFERENCES..............................................................................................................................12
INTRODUCTIONIn today era, business operations are becoming complex day by day and there are varieddomains that help firm a lot in operating its business. It can be observed that managementaccounting help a lot to the business firm in evaluating its operations and making businessdecisions. In current report, value chain costing varied techniques are discussed in detail thathelp firm in managing its operations in proper manner. Apart from this, project evaluation is alsodone to measure its viability and quantitative aspects are analyzed. At end of the report, multipletaks are performed that help firm in operating its business effeciently. In this way, entire researchwork is carried out.Identification of the strategic decision and its strategic significance1.1Impact of decision on organization financial statements and relevance of this impact ondecisionWeired retail is operating in retail sector which is highly competitive in nature and it canbe observed that in order to remain at competitive position in the market it is very important tomake technology update. Decision to make investment in new technology will definitely affectfirm financial statements (Zimmerman and Yahya-Zadeh, 2011). This is because when anycapital investment is made in the business same is recorded in the company books of accountsand due to capital investment on one side assets increased but liability also enhanced as majoritypart of asset is financed by using bank loan that is taken from financial institution. This lead toincrease in finance cost of the business and debt equity mix become unbalanced to some extent.On other hand, profitability of the firm also declined to some extent. There is relevance of impacton decision because while taking any decision in respect to selection of alternative. This isbecause whatever option firm want to choose may have negative impact on the business. Due tothis reason it is very important to identify that if specific decision is taken then to what extent itwill positively or negatively will affect business.2.3 Role and limitation budget in managing and contolling expenditure and approaches to derivevalue through better budgetingBudget help a lot to management in managing expenditures in its business. This isbecause it determine the limit within which expenses need to be controlled in the business(Garrison and et.al., 2010). Hence, in this way budet help firm in managing and controllingexpenditure in its business. On other hand, there are some of limitations of budget also and one1 | P a g e
of them is that it is possible that managers of the organization determine objectives in wrongmanner. In case this happened then performance will be measured in wrong manner and inwrong direction all steps will be taken by the Wired retail. Hence, it can be said that budget haveadvantages but if it will not be used in right way it have disadvantages also. There are number ofapproaches that can be used to derive value from bduegting and one of them is variance analysis.By using mentioned method it can be identified that in which area and to what extentperformance is good or bad and by taking step on time weak areas can be converted in to strongpoints.Evaluate the strategic decision using strategic investmentahd financialappraisal6.3 Evaluate strategic investment opportunities and financial appraisal strategic proposalPayback periodFigure 1 Calculation of payback periodAverage accounting income2 | P a g e
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