Managing Financial Resources

MANAGING FINANCIAL
RESOURCES

INTRODUCTION
• This presentation is based upon analysis of CVP analysis and application of cash Budget.
• Cost volume and profit analysis and cash budget is prepared to make effective decision
making.
• The main objective of this report is to understood the importance of different accounting
terms in the process of effective management of financial resources.

COST CLASSIFICATION
Classification of cost by examples
• Management function
• Ease of traceability
• Time and revenues basis
• Behavior in accordance
• Decision making perspective

CVP ANALYSIS
• Cost Volume and Profit analysis which is known as CVP evaluation helps in determining
the relation between cost, profit and volume.
• It defies the relation that how much cost is being incurred to attain desired level of sales
volume.
• It affect the operating income and helps in proper evaluation and control of performance.