logo

Principles of Cost and Budgetary Control

   

Added on  2020-02-05

17 Pages5114 Words134 Views
MANAGING FINANCIALRESOURCES AND DECISIONMAKING

TABLE OF CONTENTSIntroduction ...............................................................................................................................3Task 1.........................................................................................................................................31.1 Principles of costing and budget control system.............................................................31.2 Information needed to mange financial resources...........................................................41.3 Regulatory requirements for managing financial resources Care tech plc......................41.4 Systems for managing financial resources at Care tech plc............................................4TASK 2......................................................................................................................................52.1 Different source of income for the firm...........................................................................52.2 Analysis of factors that may influence availability of financial resources .....................52.3 Review of different types of budget expenditure............................................................72.4 Chosen of right decisions on evaluate expenditure ........................................................7TASK 3......................................................................................................................................83.1 Way to manage finance shortfall.....................................................................................83.2 Actions that I will take on estimation of occurrence of fraud in an organization...........83.3 Budget monitoring arrangements at Care tech plc..........................................................9Task 4.........................................................................................................................................94.1 Identify required information to make financial decisions..............................................94.2 Analysis relationship among delivery, cost and expenditure........................................104.3 Evaluate financial considerations impact upon service user.........................................104.4 Recommendation for improve the care services............................................................10Conclusion................................................................................................................................10References..................................................................................................................................1

INDEX OF TABLESTable 1: Calculation of budget...................................................................................................7

INTRODUCTION Finance is essential for every business unit because it helps to extend business onhigher level. Funds are raised through various sources that are help to expansion of business.It also supports to plan for new investments and short and long term financial planning. In thecontext of research it explains principles of cost and budgetary control in brief. Then identifyrelevant information and system to managing financial sources. In the middle content of caseit explains different income sources and analysis influences factor of financial sources.Moreover, it defines budget monitoring arrangements and information regarding to takefinancial decisions is discussed in this research.TASK 11.1 Principles of costing and budget control systemFollowing are the principles of costing which are followed by each and every type ofbusiness firm:Stakeholder engagement- Many times, it is assumed that costing is related to financedepartment only. In healthcare organizations, non finance stakeholders are alsoengaged in the activities of hospital and they have a contribution in the entire costingof healthcare organization. Thus, as per this principle, while computing cost for CareTech holding plc that is generated by finance and non finance stakeholder must beconsidered.Consistency- For costing purpose, it is inevitable to follow a consistent approach inthe accounting of transactions. This approach is required to be followed by Care Techholding plc in order to enable the cost comparisons. Internal consistency is needed todo time series analysis which is used to measure firm’s performance in the past years.Hence, costs must be recorded in the books of accounts on regular basis because ithelps managers in determining the cost benchmarks.Data accuracy- For estimating accurate cost of service, it is necessary to collectaccurate input data. These input data are recorded in different systems like accountingsystem, patient administration system and theatre system. Cost of all these systems isadded together in the accounting system to compute the final cost of services. As perthis principle, coverage of input data and its quality helps in computing accurate costof services. Thus, Care Tech holding plc must simplify its accounting system so thatthe entire input data at accurate value can be taken to calculate the cost of services ofbusiness.

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Managing Financial Resources in Health and Social Care - Sample Assignment
|22
|5951
|30

Managing Financial Resources in Healthcare and Social Care TABLE OF CONTENTS INTRODUCTION 1 TASK 11
|23
|6796
|58

Report On Caretech Plc - Management Of Financial Resources
|15
|4672
|76

Managing Financial Resources in HSC - Assignment
|20
|5853
|19

Managing Financial Resources in Health and Social Care
|27
|5684
|87

Managing Financial Resources in Health and Care: Assignment
|19
|5717
|393