Financial & Asset Management: Oman Cement Company Performance

This report provides a financial and asset management analysis of Oman Cement Company, applying accounting principles, financial management methodologies, and budgetary techniques to assess the company's performance. It examines budgetary control through variance analysis, zero-base budgeting, and responsibility accounting. The report also employs cost-volume-profit analysis to understand the impact of cost and volume changes on operating income. Furthermore, it uses cost control and earned value techniques to evaluate the performance of Oman Cement Company's construction projects. The analysis concludes that finance and asset management are crucial for businesses to manage their performance effectively, utilizing techniques such as variance analysis, standard costing, and earned value management. The report references the company's annual reports and relevant academic sources to support its findings.

Financial and Asset Management 1
Financial and Asset Management

Financial and Asset Management 2
Introduction
The main aim of this report is to carry out the financial and asset management with including the
theories, principles and methodologies of accounting and the financial management so that the
business problems can be resolved and performance can be boosted in successful manner. With
reference to this financial analysis, Oman Cement Company has been elected for using the
financial methods applications and business can be controlled in considerable manner. In
addition to this, the budgetary techniques have been examined and investigated for the purpose
of measuring performance of business. This report also covers the cost volume profit analysis
techniques through which the changes in cost and volume, the impact can be overseen on the
operating income. Moreover, cost control and earned value techniques have also been applied
over the chosen business in order to assessing the performance of construction business.

Financial and Asset Management 3
Background information about Oman Cement Company
The Oman Cement company has been operating since 1983 and it is committed towards the
development of construction industry and it has also given the strengths to the construction
industry into a new shape (OCC 2018). This construction company is situated in Oman. The
Oman Cement Company is in commission of construction industry and it is also certified with
the ISO: 9001 because its core values are customer satisfaction and adorable quality of buildings
and construction projects. The Oman Cement Company is the pioneer in the realm of innovative,
creative technology integration in beautiful designing and architecting of infrastructure in global
market. The Oman Cement Company has generated the profit for the year 2017 as Omani Rial
9,591,853 (OCC 2017).

Financial and Asset Management 4
Analysis of budgetary control
The budgetary control is an effective technique that determines that how well the management of
organization is engaged into the utilization of budget in order to control and monitor the
occurring cost and operations in a particular accounting period (Shim, Siegel and Shim, 2011).
The major budgetary control techniques are described as follows
Variance analysis
Zero base budgeting
Responsibility accounting
Budgeting for adjusting the financial resources
Cost, value, profit techniques
The cost-volume- profit analysis technique is used to measure the impact of cost and volume
over the operating and net income of business. From the CVP technique is also helpful for the
Oman Cement business to assess its performance and it also denotes the break -even point and
unit price and required unit to be sold for stating the break -even point.
Cost control and earned value techniques for analyzing the performance of Oman Cement
The cost control practice is also essential for the Oman Cement business in order to determine
the ways and methods through which the unnecessary cost can be reduced to increasing the profit
volume for construction project (Moore and Hague, 2014). The cost control techniques are as
Budgetary control
Standard costing
Value analysis
Earned value techniques
The earned value technique is termed as the technique through which the performance of project
can be measured in relation to objective manner.

Financial and Asset Management 5
Conclusion
On the basis of above analysis, it can be concluded that the finance and asset management is
valuable for the business to manage its performance with the different techniques such as
variance analysis, zero base budgeting, standard costing, cost control and earned value technique
to apply over the Oman Cement business.

Financial and Asset Management 6
References
Moore,D. andHague, D. (2014) Building Production Management Techniques: An Introduction
through a Systems Approach. UK: Routledge.
OCC (2017) Annual Report 2017. [Online]. Available from: https://occ.om/images/OCC-
2017.pdf (Accessed: November 16, 2018).
OCC (2018) About Us. [Online]. Available from: https://occ.om/about-us.html (Accessed:
November 16, 2018).
Shim,J. Siegel, J. and Shim, A. (2011) Budgeting Basics and Beyond. USA: John Wiley and
Sons.