Develop and Manage Financial Systems Assignment, Finance, Semester 1

This document presents a comprehensive solution to an assignment focused on developing and managing financial systems. The assignment delves into various aspects of financial management, including components of small business accounting systems like bank reconciliation, invoicing, and payroll. It explores the transition from paper-based to computer-based accounting systems, outlining crucial decisions and factors to consider when selecting accounting software. The solution also examines key financial concepts such as Net Present Value (NPV) and cost analysis, comparing the costs of different systems. Furthermore, the assignment addresses internal controls, differentiating between accounting and administrative controls and discussing measures to mitigate risks of fraud and errors. The document concludes with a discussion on business integrity and the importance of robust internal controls during significant business changes. Overall, this assignment provides a detailed overview of financial systems and their practical application in a business context.

Running head: DEVELOP AND MANAGE FINANCIAL SYSTEMS
Develop and manage financial systems
Name of the student
Name of the university
Student ID
Author note

1DEVELOP AND MANAGE FINANCIAL SYSTEMS
Table of Contents
Answer 1..........................................................................................................................................2
Answer 2..........................................................................................................................................2
Answer 3..........................................................................................................................................3
Answer 4..........................................................................................................................................3
Answer 5..........................................................................................................................................3
Answer 6..........................................................................................................................................4
Answer 7..........................................................................................................................................5
Answer 8..........................................................................................................................................5
Answer 9..........................................................................................................................................6
Answer 10........................................................................................................................................6
Answer 11........................................................................................................................................7
Answer 12........................................................................................................................................7
Answer 13........................................................................................................................................7
Answer 14........................................................................................................................................9
Answer 15........................................................................................................................................9
Answer 16......................................................................................................................................10
Answer 17......................................................................................................................................10
Answer 18......................................................................................................................................11
Answer 19......................................................................................................................................12
Answer 20......................................................................................................................................12
Answer 21......................................................................................................................................12
Answer 22......................................................................................................................................13
Answer 23......................................................................................................................................13
Answer 24......................................................................................................................................13
Answer 25......................................................................................................................................14
Reference.......................................................................................................................................15

2DEVELOP AND MANAGE FINANCIAL SYSTEMS
Answer 1
Components of small business are –
 Bank reconciliation – it is crucial for the accounting system of small business as it helps
is matching the balances of cash as per the accounting records with the corresponding
bank statement
 Invoicing – this is used under accounting system of small business as it assists in
communicating with the customers. Through the usage of invoices customers are in the
position to understand the amount they are required paying and the due date for payment.
 Credit card and BPAY payments – through using the BPAY small businesses can receive
payments through mobile or online financial institution which makes the payment system
significantly faster.
 Payroll or paying staff – this is performed through automated direct online payments of
the employees through use of accounting system. It provides direct access to send
payments to the staffs.
 Tracking and paying expenses – tracking assists in keeping track of expenses and earning
under small business system (Lavia López & Hiebl, 2014).
 Managing statements and quotes – accounting systems of small businesses assists in
managing statements and quotes as it assists in tracking the money received, keeps track
of owed amount and thereby generate the statement automatically
 Computing and tracking GST – through the accounting system small business can file the
GST returns online which in turn simplify the process of collecting the everything send to
the ATO automatically
 Preparation of budget – budget shall be made as it makes easier for the small business to
record all the earnings and expenses. Owing to this the accountant does not have to
maintain the same manually.
 Payment of superannuation to the staff – as payment of superannuation is made to the
staffs through using the accounting system it helps in saving considerable time while the
superannuation payment for the staffs are organized
 Basic list of stock – it keeps the track for the incoming and outgoing of stock under the
small business while the accounting system is used (Storey, 2016).
Answer 2
Decisions required to be made while progressing from paper based to computer based
system of accounting –
It is the best approach to make the changes at the closing of the accounting period so that
all the transaction required to be recorded in the computerised system of accounting can be
made. For instance, it can be recognised in the given case that instead of 15th April 2019 it shall
be started from 1st May 2019. Further, while the paper based records are converted into
accounting system date used for closing the trial balance shall be used for each of the accounts of
trial balance in the computerised system (Levy, 2014). Balances of equities, liabilities and assets
can be carried forward however the income and expenses account shall be brought down to nil.
For the new businesses there will be no opening trial balance and hence, cash balances shall be

3DEVELOP AND MANAGE FINANCIAL SYSTEMS
entered as the balance available in hand. In addition, liabilities may also be there in case the
business owes any start-up expenses (Ismail & King, 2014).
Answer 3
Different factors taken into account while taking decision regarding purchasing
computerised system of accounting and selecting the appropriate software are as follows –
 Whether the user is running the company or is a sole trader usage of accounting system
allows to work from any corner of the world instead of sticking in any one place like
office as all data are accessible through online.
 Whether the user has more than 1 business
 Numbers of staff members are there who are required to make the payment. While
selecting the accounting system the user shall take into account that the system assures
secure payment system through online
 Whether the users requires tracking system for jobs or inventories. If the user requires the
same he/she must invest in the accounting system that will provide the same and will
allow the business with large numbers of physical products for the purpose of tracking.
 Whether the user follows the charging system for the client by hour or by sales units. For
finding out the right computerised system of accounting the user shall take into
consideration the cost plus pricing, billing based on hour, value billing, fixed pricing or
value pricing for the clients (Al Shobaki & Abu-Naser, 2017).
 Whether the user prefers using the browser that is based on the system of computerised
accounting or actual software that is to be installed physically in desktop. However,
delivering the files for accounting data those are required to be stored in the cloud care
also necessary
 Whether the user requires audit trail, if requires then the user shall look for the system
that will provide clear audit trail for all the transactions.
 Whether the user requires preparing the budget. If requires then one will prefer the
computerised system of accounting that is particularly designed for automating the
management and preparation of budget.
 Whether the GST and BAS calculation system of the user is complex. In case the
computation is complex the user shall look for a system that will faster in processing the
computation of BAS and GST
 Size of the business is crucial as the capability of software may advantageous to the small
businesses (Al Shobaki & Abu-Naser, 2017).
Answer 4
The term NPV stands for net present value. It is considered as the difference among the
present value of the cash inflows and cash outflows over the specific period of time. It is used for
analysing the profitability of the project or projected investment under capital budgeting.
Answer 5
Computation of cost –
Old system New system

4DEVELOP AND MANAGE FINANCIAL SYSTEMS
Fixed cost $ 2,000.00 $ 6,000.00
Variable cost $ 18,000.00 $ 12,000.00
Total cost $ 20,000.00 $ 18,000.00
Fixed cost Variable cost Total cost
$-
$5,000.00
$10,000.00
$15,000.00
$20,000.00
$25,000.00
Monthly cost
Old system
New system
From the above table and graph it can be established that though the fixed cost for new
machine is higher as the variable cost for old machine is higher, the total cost for old machine is
higher. Hence, the company shall invest in new machine. As the sales value is not provided it is
not possible to compute the break-even point.
Answer 6
Differences between accounting and administrative internal controls are as follows –
Accounting controls associated with use of the accounting software, for instance, XERO
or MYOB are designed for cross check the entries as well as delivering the comprehensive
reports. These controls are come along with the software and are dependent on the input data and
hence incorrect data will create problems. Therefore, most of the entities those use computerised
system of accounting assures that they have computerised order an information regarding the
transaction, banking related information, customer service, payroll and related other information,
cash management system for the controls those are required to be applied to generation of data
and load the same automatically into computerised system of accounting those are already
checked (Abdel-Khalik, 2014).
On the other hand, administrative controls are considered as the oversight as well as
recording of the daily operations. Main reasons behind internal administration is for policy
systems and the checkpoints that assures proper approvals from the management regarding
contracts, transactions, public relations, human resources, marketing and keeping the records
among various other functions of administration. Procedures for the same involves the following
–

5DEVELOP AND MANAGE FINANCIAL SYSTEMS
 Certification of signed checklist with the followed processes or
 Number of computer programs that is programs of project management and ERP
programme (Reason, 2016).
Answer 7
Internal control systems involves the process and policies used by the management to
obtain the following –
 Safeguarding the assets that requires well designed internal controls for protecting the
assets against loss from accidents or frauds
 Objectives and goals required to be fulfilled that is internal controls deliver the
mechanism for the management for monitoring the achievements of the operational goals
along with the objectives that in turn will provide the overview regarding how the
business is growing
 Assures the compliance that is compliance with the state, local and federal laws along
with the regulations that will have an impact on the business operations (Nyakundi,
Nyamita & Tinega, 2014).
 Integrity and reliability of the financial data that is the management shall have accurate
complete data and in timely manner. It involves accounting information for planning,
reporting and monitoring the business operation
 Promotion of effective and efficient operations that is internal control shall assist the
employees and management in optimising the operational efficiencies and effectiveness.
Apart from that, while establishing the control system the activities related to preventive
controls shall be taken into consideration to assure that they are in place and shall carry out the
detective control activities. The reason behind this is that activities related to preventive control
prevent the likelihood of frauds or errors. Further, the detective activities are used to recognise
the undesirable occurrence (Paunonen & Pohjolainen, 2014).
Answer 8
Control systems to reduce the risks of frauds or errors are of three types as follows –
 Technical security that is used to offer protection for the electronic records against loss
from damage, heft, or from transport
 Administrative security that is focussed on the protection of records and assets that
includes process of reconciliation and authorisation.
 Physical security that offers protection of the physical records and the assets against loss
from damage or theft.
Main objective of protecting the records and assets secure at all the times is to prevent the
same from unauthorised access, damage or loss (Vovchenko et al., 2017).
The practices and concepts those can be applied are –
 Administrative organisation that will ensure efficient performance on continuous basis
for all the departments of the organization and ensuring that all the employees are
performing i secured way

6DEVELOP AND MANAGE FINANCIAL SYSTEMS
 Designate the point person that is someone who will be the manager and will have full
control of the position
 Access to the electronic records that is limiting access which is important for securing the
electronic records and not allowing anyone to have access on the same without
authorisation (De Persis & Jayawardhana, 2014).
 Limiting physical access to the data that is only one person shall have access to the data.
 Limiting access to the employee turnover
 Establishing complex passwords and enforcing the policy that will ask for periodical
changes of passwords. This is considered to be crucial as password change will prevent
the data from continuous access, limit the breach to various accounts and will prevent use
of the saved passwords.
It is further crucial to maintain update for secure prevention as frequent as possible to
prevent unauthorised access, damage or loss of data. However, there is always the likelihood that
any of the above mentioned procedures and policies will still have the risk of exposure to fraud.
It is unfortunate that data can never be completely free from fraud as it requires trusted
employees for following the practices and concepts to be put in place (De Persis &
Jayawardhana, 2014).
Answer 9
Business integrity is termed as having reliable data based on which the decision is made
after or during the significant business changes. However, the same can be changed owing to the
implementation of the growth strategy like acquisition or merger, expansion of the business line
or entry into new market. Owing to rapid growth the accuracy is generally compromised owing
to changes in the approach of defining the metrics and ledger items. It is crucial to establish
strong internal control with the accurate external reporting along with comprehensive practice of
risk management as and when the entity is growing the risks are escalated or the loss on account
of transport. Business integrity can enhance quality for internal control while strong procedures
and policies are there in place for internal control (Goldratt, 2017).
Answer 10
In companies like financial institution, accounting practices, legal practices, forms of
public relations, services for financial advisory and the entities engaged in hospitality and
tourism business are required to prepare the comprehensive budget. Key element of the budget is
the budgeted income including the revenues that is generated through sales revenue, for instance,
the legal practice projects total earnings from the fees expected to be received over the period of
budget and using the same for determining budgeted expenses and associated costs.
Alternatively, the projected earnings can be analysed through anticipated service hours to be
billed and multiplying the same by appropriate numbers and level of support and professional
employees that is required to be used during the period of budget (Macfarlane, Zhang & Pun,
2014).
Answer 11
Integrity in organization is crucial as it helps in combining the concern for law with the
importance on the managerial responsibility for the ethical behaviour. Usage of integrity related

7DEVELOP AND MANAGE FINANCIAL SYSTEMS
strategies may differ in terms of scope and design. However, it depicts the guiding values,
patterns, aspirations of conduct and thought of the entity. While integrated into the company’s
daily operation that is the strategies may assist in preventing the damage of ethical gaps while
tapping into the powerful impulses of human being for the purpose of moral action and thought.
Consequences of ethical gap can be far reaching and serious. The entities may become entangled
quickly in all consuming web of the legal proceedings. Increasing risks associated with liability
and litigation in past decade owing to new criminal and civil offences related legislations by the
law makers owing to higher penalties as well as enhanced support for the enforcement of law. In
the same way the relationship and reputation may become damaged while ethical gaps take place
(Somera & Holt, 2015).
Answer 12
System of internal control establishes the responsibility line clearly. Ultimately, control
involved people and important principles those are followed for achieving sufficient accounting
and administrative controls. Segregation of record keeping with custodianship that is
responsibility associated with initiation of business transaction and for custody of organization’s
asset shall be segregated from the responsibility associated with maintenance of accounting
records. Responsibility division for the associated transactions that is minimization of likelihood
of errors, theft, frauds, responsibility associated with series of related transactions shall be
separated into 2 or more departments or employees. Hence, work of 1 employee acts as the check
for another employee’s work. Electronic and mechanical devices those are designed for
protecting the assets and improving accuracy of accounting process. On the other hand, internal
auditing carried out by the internal auditors includes the employees who are the employees of the
organisation and are responsible for review on continuous basis and study of the system for
internal control (Aziz et al., 2015). Non-compliance with the procedures established and the
suggestions provided by internal auditor helps in enhancing the system of reporting to the top
management. Further, the internal auditors also help the external auditors those carry out annual
audit. Other measures of control includes –
 Usage if pre-numbered documents
 Rotation of the employees for wide range of jobs
 Requires all the employees taking annual leaves.
It is crucial for any business to implement the policy for reporting suspected frauds that
shall be included in communication and information part of framework (Chang et al., 2014).
Answer 13
a) Five financial tasks those require review are as follows –
 Review of stock balances – in each 6 months it is crucial to establish stock control
display to locate areas of business that has impact on stock management.
 Review of work-in-progress for professional practices and construction firm at least on
quarterly basis
 Review the debtors on monthly basis. This shall be done assure that the business has
adequate amount of working capital for reinvesting and growing.
 Review entitlements of annual leave on quarterly basis for avoiding the downsizing of the
organization

8DEVELOP AND MANAGE FINANCIAL SYSTEMS
 Review of long-service leave entitlements on quarterly basis to assure that the staff is
entitled to Long Service Leave Act 1976 to have access to long service leave
Below mentioned 5 financial tasks require reconciliation along with the frequency –
 Reconciliation of physical stock take in each 6 months;
 Reconciliation of bank along with investment accounts at least weekly;
 Reconciliation of debtors ledger/ageing report at least monthly;
 Reconciliation of creditors ledger/ageing report at least monthly;
 Reconciliation of equipment and fixed assets at least quarterly; and
 Reconciliation of GST at least quarterly.
b) Below mentioned 4 strategic financial takes as well as explanations for the actions those
are flows from the analysis are –
 Setting of targets for the financial performances at least annually and includes following
–
 Overview of the business regarding where it will reach in next year and after that, setting
of targets in accordance with the same
 Incorporating the targets into strategic plan that is key performance analysis indicators
and the budgets
 Helping in setting the performance targets
 Changing the targets where the market or any other circumstances dictate
 Considering incorporation of non-financial activities under targets that is measurement of
throughput, number of sales calls
 Analyzing and reviewing financial statements to be conducted annually at least, monthly
or quarterly preferably
 Comparing the key ratios from the financial statements including working capital ratio,
profit per employees for averaging the employees profit and stock turnover
 Comparing performance against the financial target and past performance
 Reviewing the actual performances against the budget
 Asking yourself the reason of gap among budget and actual
 Considering the efficiency level in overcoming any issues
 Preparing the profit and loss budget
 Assuring that the budget reveals the financial and strategic targets
 Incorporating key findings based on the review of last budget, break-even analysis and
sensitivity analysis
 Assuring that the projected budgets are realistic and has not been manipulated for fitting
into desired results.
Answer 14
In accordance with the Conveyance Regulation 2010 (SA) under the regulation 14, 15, 16
and 17 for purpose of Section 23(1)(c) of act, the conveyancer shall comply with the below
mentioned requirements –
 14 – maintain the records – conveyance shall in accordance with the requirement of
Section 23(1)(c) of act, maintain detailed accounts for receipts and the disbursements of
the trust money required to be compiled by the conveyancer

9DEVELOP AND MANAGE FINANCIAL SYSTEMS
 15 – cash books – conveyance shall maintain cash receipts book as part of his records
under which information related to all receipts of the trust money is recorded
 16 – Separate the ledger accounts of trust – conveyancer shall assure that the ledger
accounts of trust are maintained separately.
 17 – reconciliation statements – conveyance shall at the closing of each month prepare
and keep the reconciliation statements as a part of the records
The records shall be of detailed receipt accounts and disbursement of the trust money that
is compiled by the conveyancer for complying with above mentioned regulations
(Legislation.sa.gov.au, 2019).
In compliance with regulation 19 – audit of the trust accounts in accordance with section
24(1)(a) of act, audit period for which the conveyancer shall have audited records and accounts is
for the period from –
 Close of the conveyancer’s last audit period; or
 In the case the conveyancer being the granted registration – the date of registration,
Until –
 2 months before the date next taking place on which the conveyancer is required to lodge
the annual return; or
 If any other date is fixed by Commissioner at the request of the conveyancer- the date
next taking place fixed by the Commissioner (Legislation.sa.gov.au, 2019).
Answer 15
The competition and Consumer Act 2010 widely covers the below mentioned things –
 Labeling and product safety – shall make assure that false, misleading or deceptive
information is not provided to the customers
 Price monitoring – it includes being more efficient while it involves direct monitoring for
observable prices
 Unfair trade practices – it includes engaging in the conduct that is the purpose, likely
effect or effect will lessen the market competition substantially.
 Industry regulation including telecommunication, gas, electricity and airports
 Industry codes – it is the code that describes the main business activity and shall include
relevant tax returns
 Acquisition and merger – it includes various transactions for purchase of the assets and
acquisition of managements (Legislation.gov.au, 2019).
Main sections of the act are as follows –
 Part IIIA – 3rd party access to nationally significant, essential facilities;
 Part IV - anti-competitive practices;
 Part IVB - industry codes of conduct;
 Part VI - enforcement and remedies
 Part VII - authorizations, notifications and class exemptions;

10DEVELOP AND MANAGE FINANCIAL SYSTEMS
 Part VIIA - price monitoring and surveillance relating to industries or businesses declared
by the Australian Government;
 Part X - international liner cargo shipping;
 Part XI - application of ACL as a law of the Commonwealth;
 Part XIB - anti-competitive conduct in telecommunications; and
 Part XIC - access to services for telecommunications (Legislation.gov.au, 2019).
Schedule 2 – Australian consumer law further covers the deceptive misleading conducts, unfair
practices, unconscionable conduct, conditions and warranties, product safety and information,
manufacturer’s liability regarding goods with the offences related to safety defects, origin or
country representations.
Answer 16
Qtr 1
(July
-
Sept)
Qtr 2
(Oct -
Dec)
Qtr 3
(Jan -
Mar)
Qtr 4
(Apr -
June)
Tota
l wks
Hrs per
week
Hourly
rate
Total
revenue
Week
service
provided
Craig 13 13 11 13 50 40
$
375.00
$
750,000.00
Alexande
r 13 13 13 9 48 38
$
285.00
$
519,840.00
Sam 11 13 13 13 50 36
$
185.00
$
333,000.00
Answer 17
Costs
Actual
expenses
Budgeted
expenses Variance
Favourable/
unfavourable
Wages 174000 180560 6560 Favourable
Electricity 49000 59040 10040 Favourable
Cleaning 88000 84560 -3440 Unfavourable
Supplies 18000 21540 3540 Favourable
Water 22800 17352 -5448 Unfavourable
Maintenance 16200 15312 -888 Unfavourable
Answer 18
Return on assets:
Net Income = $52,500
Opening Assets = 555,000

11DEVELOP AND MANAGE FINANCIAL SYSTEMS
Closing Assets = $540,000
Average Total Assets = ($555,000 + $540,000)/2 = $547,500
Return on Assets = ($52,500)/$547,500 = 0.096%
b) Operating profit margin:
Operating Profit = $172,400
Net Profit = $52,500
Operating Margin = 328.38%
Operating Margin Formula = $172,400 / $52,500 x 100 = 328.38%
c) Debt Ratio:
Total Liabilities = $300,000
Total Assets = $540,000
Debt Ratio = 0.56x
Debt Ratio Formula = $300,000 / $540,000 = 0.56x
d) Quick Ratio:
Cash = $48,000
Short‐term marketable securities = $540,000
Accounts Receivable = $580,000
Current Liabilities = $40,000
Quick Ratio = 29.20
Quick Ratio Formula = $48,000 + $540,000 + $580,000 / $40,000 = 29.20
e) Interest coverage ratio:
Earnings before Interest & Tax = $580,000
Interest expense = $23,000
Income tax expense = $44,600
Interest coverage ratio = 8.58x
Interest Coverage Ratio Formula = ($580,000) / $67,600 = 8.58x
Answer 19

12DEVELOP AND MANAGE FINANCIAL SYSTEMS
Issue generated through comparison is that total expenses amounted to 80% of annual
turnover (revenue) of $ 150,000. Average total for the expenses are required to be 51% of annual
turnover (revenue).
Answer 20
Steps involved in development of dashboard for the financial reporting are as follows –
 Step 1 – determine what to be included in the dashboard report for analysing the
performance of business and note the critical areas of the business performances as well
as underperformances
 Step 2 – incorporating key measures, if any that is implemented for enhancing the
performance of business
 Step 3 – recognition of major strategic goals as well as other major business goals
generated from business plans and the sub-plans like marketing plan
 Step 4 – incorporation of key risks into report
 Step 5 – incorporating the opportunities into report like forecasting of trends and
information (Guni, 2014).
6 criteria those are used while selecting KPI’s are mentioned below –
 Sales
 Gross profit
 Work-in-progress
 Liquidity/cash flow
 Net profit
 Business planning (Guni, 2014).
Answer 21
Following are the risks and threats associated with small businesses along with their
counter measures:
 Customer risks: The counter measures can include binding the customers in long service
contracts, asking for feedbacks about the business’s services and products and often
paying them a visit.
 Supplier risk: The mitigation techniques can include binding them in a long service
contracts and determining alternative suppliers who can supply similar products.
 Staff risks: The counter measures can include arranging a robust procedure for selecting
the right and desired candidate for the business or by inculcating confidentiality
agreements signed by major staffs.
 Business premises and location risks: The counter measures can include discovering
suitable locations which can be easily accessed by staffs, customers and suppliers.
 Information Technology (IT) risks: The counter measures can include safe keeping of
desktops and laptops and keeping the data safe by storing those data and backups offsite
(Marcelino-Sádaba et al., 2014).

13DEVELOP AND MANAGE FINANCIAL SYSTEMS
Answer 22
Sources of Public Assistance:
 Professionals (like tax professionals) can be hired who can be give their expert advice to
help small businesses. Only registered Tax Agent recognized by the Tax Practitioners
Board (TPB) can ask a person to lodge tax returns.
Sources of Private Assistance:
 Business Enterprises and business centres
 Advisory services provided by small business communities
 State and regional business development offices undertaken by the government like
Department of Industry, Science and Innovation provides easy access to services for
planning, information and transactions to run the business.
Answer 23
System Usability Scale (SUS) can be used to figure out the suitability and compatibility
of accounting system. This system consists of 10 questions each having five responses.
1. Frequent use of system
2. Unnecessary complexity of the system
3. Easy usage of the system
4. Technical assistance in order to use the system
5. Integration of the system
6. Inconsistency of the system
7. Adapt to the usage of the system
8. Cumbersome to use the system
9. Confidence in using the system
10. Additional learning in order to use the system (Orfanou, Tselios & Katsanos, 2015).
Answer 24
The required factors are:
 Inefficient adaptability of software to business processes; improper implementation of the
software to business processes can cause complications
 Changes in market under some circumstances. Software has impact on financial services
market through handling repetitive and routine tasks such as maintenance of hedges along
with execution of tasks
 Software that has not been adapted in accordance with business processes. If the software
has not been adapted in accordance with the business it may lead to complications (Wirtz,
& Lovelock, 2016).
Answer 25
Factors to be kept in mind while pricing services and products:

14DEVELOP AND MANAGE FINANCIAL SYSTEMS
1. Profit: “How much profit do I want to make?” is the question a business owner should
ask himself because they charge what other vendors charge and set pricing of their own
without taking into account what they want.
2. Positioning: In this factor, questions like what status you want in marketplace, most
expensive or luxurious or high brand or cheapest etc. comes into play. So positioning of
business is very important.
3. Customers: one should know the customer’s demand and what customers want from your
services and products. What is that a customer wants: is it price centric or value centric
product?
4. Costs: Determine different types of costs associated with your business which includes
fixed costs, direct costs etc.
5. Competitors: This includes questions like where do these competitors stand in the market
place? What category of customers are they targeting? What are the services they are
offering? What the rivals are charging for services and products?

15DEVELOP AND MANAGE FINANCIAL SYSTEMS
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