Report on Business Control Systems and Principles of Costing
Added on 2020-06-06
15 Pages4532 Words40 Views
FinanceLeadership ManagementPublic and Global Health
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Managing FinancialResources
Table of ContentsNTRODUCTION.............................................................................................................................3TASK 1............................................................................................................................................31.1 Main principles of costing and role business control systems..............................................31.2 Inform which contributes to manage financial resources.....................................................41.3 Legal requirement need to follow for managing financial resources....................................5TASK 2............................................................................................................................................62.1 Different sources of income in health and social care..........................................................62.2 Factors which impacts the availability of financial resources in health-care........................72.3 Analysis of different types of budget expenditures in health and social care.......................7TASK 3............................................................................................................................................8Covered in PPT...........................................................................................................................8TASK 4............................................................................................................................................91.4 Systems which helps in management of financial resources................................................92.4 Evaluation regarding decisions which are taken in context of health and social care..........93.3 Analysis of the budget monitoring systems in health-care ..................................................94.1 Identification of resources which helps to make financial decisions..................................104.2 Relationship between health-care service delivered, costs and expenditure ......................114.3 Impact of financial considerations upon individual using health-care service...................114.4 Recommendations of different ways to improve health-care services to make changes infinancial systems.......................................................................................................................12CONCLUSION.............................................................................................................................12REFERENCES..............................................................................................................................14
NTRODUCTIONManagement of funds is important requirement for every organisation to attain successand accomplishment of their objectives. It is the duty of top management is to consider therequirements funds of each and every department and effectively allocate resources to improvetheir efficiency. Funds are available in the form of cash and liquid assets which helps inperformance of regular operations. This includes about improvement of the understanding aboutaccounting principles and techniques which helps to keep the effective record of various aspects.In health and social care sector there is same requirement of application of accounting principlesto improve the decision making power of internal parties. Kingston Hospital NHS FoundationTrust is situated 12 miles away from central London (Almalki, FitzGerald and Clark, 2011).In the present report explain about, business control systems and principles of costing,information which helps to manage funds, legal requirements which helps in management offinancial resources, sources of income in health-care, different factors which impacts theavailability of financial resources, different type of budgets and aspects which helps to managefinancial shortfalls. Also, information helps in financial decision making in health-care, impactof financial considerations upon individual using health care services and suggestions whichcontributes in improvement of social care service through bring changes in financial systems.TASK 11.1 Main principles of costing and role business control systemsCosts: Money spent by organisation to get something valuable to accomplish theirobjectives and achievement of their desired results. There are many aspects which are includedwhile cost is calculated like efforts, raw material, labour, risks associated, opportunity foregone,time period etc. All expenses are considered as costs but not all costs are expenses. For ex.,Kingston Hospital NHS Foundation Trust provides services 12 miles away from central London.Cost includes amount of every aspect which they incur to take patients from their location tohospital (Andersen, Rice and Kominski, 2011). Income: It is amount which is earned by entity within specified period of time. It is anmoney received by Kingston Hospital NHS Foundation Trust as return regarding providence oftheir services to patients after deduction of all expenses.
Cost-benefit analysis: It is an important tool which is used by the management ofKingston Hospital NHS Foundation Trust to ascertain about the effectiveness of their decisions.It includes the process where all benefits are added which are going to receive from givensituation and subtraction of all costs which need to incur for accomplishment of such action. Thismodel helps to analyse potential costs and revenues generates from performance of particularproject (Aveyard, 2014).Cost centre: One of the separate department performs the function regarding controllingof costs which are incur upon different aspects. Such centre of Kingston Hospital NHSFoundation Trust has the main aim to consider the costs not about the capacity of revenuegeneration from the use of their assets. It provides the opportunity regarding reduction ofunnecessary costs and contributes in improvement of profitability.Break-even: This used for monitoring the financial performance of organisation. It thepoint where total cost and revenue are equal. It means the situation of no profit or loss. KingstonHospital NHS Foundation Trust uses this point to understand about activities need to perform onregular basis to maintain break-even point and revenue amount.1.2 Inform which contributes to manage financial resourcesFor effective management of financial resources need to have information about differentaspects which are directly or indirectly associated with financial performance of KingstonHospital NHS Foundation Trust. It is the duty of management is to identity all such informationto improve their decision making and bring effectiveness in management process. Theinformation need to consider is defined below:People: One of the important factor which has direct impact upon costs. KingstonHospital NHS Foundation Trust need to identifies the data about patients which are comeper day on average basis. It helps to manage their funds according to such number ofpatients (Chartier, 2014).Equipments: Kingston Hospital NHS Foundation Trust need to use effective medicalequipments for ensuring proper treatment of their patients. So, they need to arrange theirfunds according to such requirements. Legal requirements: There are many regulations are provided by government which isneed to follow by Kingston Hospital NHS Foundation Trust which indirectly providesdirection in performance of their actions and also prevents from legal penalties. Such
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