Investigating Financial Control Essay Example for Free

Investigating Financial Control Essay Task one The three different types of costs are fixed cost, variable cost and total cost. For all of the diverse types of costs there are also dissimilar calculations to work out each type of revenue. Fixed cost does not change no matter how much they produce, even if the business produces 1 or 1,000,000,000 it will always stay the same. Examples of fixed costs are rent, salaries, rates and loan payments. Variable cost change with the level of production. In order to work out the total variable cost you have to times together the quantity and the variable cost. Also, to determine the total cost you have to add the fixed cost and the variable cost. The meaning of Start up cost is the money you need to start up the business. Running cost always varies because of the level of stock changes and you have to pay for workers. In the case of Kiren and Zaiba, salaries are used as a fixed cost because they don’t change with the level of output. Heating and lighting are used as a variable cost because the variable cost change with the level of production. The sum: Fixed cost + variable cost = total cost which is 6,000 in the scenario. The definitions for the following words are: Profit What is left when all costs incurred in making and selling a product are deducted from the revenue gained from that sale. It acts as the reward to the entrepreneur, usually the owner of the business, who has provided the capital. It is usually the net profit after tax which represents the surplus for the owners of the business and is paid as a dividend to shareholders. Profit maximization is seen as one of the major objectives of a business, although it is more likely to be an objective for the investors in a business, than for its managers or employees. It might be for those groups that profit acts as a constraint, while higher sales orhigher wages and salaries are more important objectives Net profit: This is the amount of sales revenue that a business earns less all the costs involved in achieving that revenue, including both direct costs and expenses. The net profit figure represents the figure for profit before taxation or a dividend are further deducted, and shows how successful a business has been in generating profits from its trading activities. Gross profit The figure obtained on the profit and loss account when the cost of goods sold is deducted from the sales revenue of a business, but it does not take into account any of the expenses of running a business such as wages, distribution costs or administration costs. Fixed cost Variable cost Total cost Rent  £800 Heating and lighting  £200 Salaries  £1400 Advertising  £50 Insurance  £210 Administration  £50 Rates  £150 400 CD’s  £2800 Loan repayments  £290 Telephone  £50  £2850  £3150  £6000 Task 2 Kiran Zaiba analysis: In task two I used excel to work out the break even point, at diverse costs. The fixed costs were the same because I only have done break even for one month. The quantity is going up in one hundreds. I calculated the variable cost by multiplying the quantity by 6 which came out to be going up in six hundreds. I calculated the total cost by adding the fixed cost by the variable cost; in this case it was increasing by six hundred. To calculate the sales revenue, I had to multiple the quantities by 12, which was increasing by 1200. To calculate profit or loss, I subtract sales revenue from total cost. According to the information on my table Kiran zaiba have to sell 1000 CD’s to break even. Break even is when the cost is 6000 and the quantity is 6. In the following table I have changed the fixed cost to 6950 because the following values increased: the rate increased to  £300 also, the telephone increased to  £100, advertising to  £125 and the lighting and heating increased to  £425. Using the contributing method I will calculate the following data to achieve how much CD’s will be needed to break even. In order to do this I will have to use the following equation 6950 divided by 6. The sum equals 1158. So they will have to sell 1158 to break even. This means that they will have to increase sales. Advantages of break even analysis Disadvantages of break even analysis Break even can be used to predict profit It price suddenly changed it wouldn’t take it in Break even can be used to determine financial needs For example, If petrol prices go up the break even will not show the increase. Keep track of profits and losses. It is a forecast which means that the data is predicted. Gives you ideas for selling prices (if you made a lot of money at that period of time). It helps to calculate profits Helps to make decisions on prices I think that break even is very useful because: It assists you to figure out your profit Helps you by giving you assumptions of prices It is extremely significant in that if you are taking into consideration to applying for a loan. Gives you a clear impression of prices TASK 3 Analysis for cash flow forecast I will now construct the cash flow forecast I have now prepared an annual cash flow forecast using monthly data I have also included the loan in January. The table looks like this for a regular cash flow forecast: image00.png The sales become irregular due to an immense amplify in downloading and sharing music. The irregular cash flow forecast should look like this: image01.png Cash flow forecast is extremely significant and has many uses. For example, it helps the bank manager to keep up to date; it helps managers to plan ahead and it also determines if there is a problem with the cash flow by resolving the difficulty. Regular cash flow shows: That there is not a problem with the cash flow because the opening bank balance is always increasing, so the profit is rising. The main objective for a cash flow forecast is to see whether there is a profit or loss. Currently, I have identified that with the regular cash flow there is not a problem because all the numbers are increasing, meaning that a profit has been achieved. Irregular cash flow forecast shows that: The opening bank balance starts with zero; it then rises immensely in February to 11300. Then it starts to decrease steeply all the way to December, leaving the opening bank balance drawn to a close with -37470. This is bad for the business because now they are not making a profit The total cash inflows, starts of with 18000 in January. Then it starts to reduce in each and every month, until it comes to December where it increases to 2700 from November. This is consequently leading them to a loss. The total cash outflows contrast from low to high in that, in January it is 6700 and then increases enormously to 9500 in December. The Implication of the problem is that there is an increase in people who tend to download and share music. This will inevitably affect their sales. This will also consequently make Kiran and Zaiba fall to lose a profit. Because of this problem Kiran and Zaiba are making a loss of  £43,920. The implication to the problem is that, In order to reject the lost, I recommend that The other way around this is to increase the number of quantities, in order to sell more and increase profit. Or, lower maintenance costs and launching a download website so you can attract costumers worldwide. Task 4 The documents which Kiran and Zaiba will need to sequence sales and purchasing from order to receipt of goods are: Issues by the purchaserIssued by the seller Delivery note- accompanies the goods. Is signed by purchaser as proof of delivery. Sales invoice- gives full details of goods, prices, discounts, VAT Credit note- issued if goods are returned or to adjust any over- charges on the invoice. Statement of account- summarises all transactions and states balance owning. Remittance advice – summarises the account for return with cheque payment Cash receipt- issued to confirm cash payment has been received Purchase order- lists items required and price for each. Goods received note- lists items received. Purchaser tells seller if any shortages or damage Cheque or electronic transfer- to pay balance on statement I am now going to describe the manual and electronic ways of recording financial transaction that Kiran and Zaiba could use: Predominantly, most Kiran and Zaiba’s transactions are mostly recorded electronically because they are developed either by an electronic cash register or by computer. The advantage of recording transaction for Kiran and Zaiba indicate that any linked documents are printed mechanically. Kiran and Zaiba may want to take the alternative route by considering keeping manual records which are then kept by businesses that would not find it valuable to buy a cash register or use a computer system. Even people who receive payments in a customer’s home- such as service engineers- are now more likely to record the transaction on a laptop than carry a receipt book with them. Kiran and Zaiba want and need to prevent fraud because they are a minute business. To terminate these frauds they will have to have: A thoughtful staff selection which are trustworthy to procedure which includes character references. A â€Å"whistle- blowing† scheme where workers are compensated for reporting fraud. The system should guarantee that information is treated confidentially. An unambiguous policy on dealing with fraud. Scam is usually considered to be â€Å"gross misconduct† (which means disgusting bad behaviour) for which workers can be fired instantaneously as part of the disciplinary procedure. Task 5 The strengths of a cash flow forecast are that: It helps the bank manger to keep up to date It records how much money you have It gives you ideas to plan ahead Demonstrates how much money you have at the present time The forecasts of sales and cash flow, and hence crucial abundance of profit, will be vital on which the prospective bankers will assess the upcoming feasibility of the business. It follows that these forecasts will come under crucial inspection and significant judgement. The importance of cash inflows is so you distinguish how much value of money is going towards the inside of a businesses bank account at a particular time. An example for this could be: the income Kiran and Zaiba make for selling CD’s. The strengths of break even are: It helps you see where you have an increase or decrease in your profit. Keeps you informed Break even engrosses discovering what would occur if there were changes to cost of revenues. The types of questions the boss would ask are: Is it possible for Kiran and Zaiba to increase sales by 5% and still make a profit even if sales fall? If by reducing sales by 10% will this effect Kiran and Zaiba? Say if Kiran and Zaiba shift of to an inexpensive property, how would this affect our profits? There is many different ways in which, to record this information. For instance, Manual recording principally used by businesses that, tend not sense that it is advisable to buy a cash register or computer. (For example, If Kiran and Zaiba don’t sell as much CD’s then, they may find it simpler to record these manually). Also, there is an alternative route which is, to record by electronically, which means that associated documents are printed mechanically. This could be beneficial if Kiran and Zaiba are selling lots of CD’s. Cash flow indicates the amount of money received and spent over time. This is significant in that, you will then be aware of how much income is in the bank. If Kiran and Zaiba have an enormous demand they can amplify there sales because there are not adequate CD’s. They could charge more which is better for the business because they are making more profit. But if there is too much CD’s then they could reduce prices to sell more, thus allowing them to make profits. Just to add, the main objective for any business is to make a profit. So, Kiran and Zaiba will want to do so. To do this, Kiran and Zaiba may want to take this into consideration that they may want to reduce their sales in order to sell more and to attract more costumers.

Saint Augustine :: Saint Augustine Religion Doctrines Essays

The doctrine of the Divine Unity is a truth of natural religion; the doctrine of the Trinity is a truth of revealed religion. The various systems of natural theism present arguments for the Divine existence, unity, and attributes, but proceed no further. They do not assert and endeavor to demonstrate that the Supreme Being is three persons in one essence. It is because this doctrine is not discoverable by human reason, that the Christian church has been somewhat shy of attempts to construct it analytically; or even to defend it upon grounds of reason. The keen Dr. South expresses the common sentiment, when he remarks that â€Å"as he that denies this fundamental article of the Christian religion may lose his soul, so he that much strives to understand it may lose his wits.† Yet all the truths of revelation, like those of natural religion, have in them the element of reason, and are capable of a rational defense. At the very least their self-consistence can be shown, and object ions to them can be answered. And this is a rational process. For one of the surest characteristics of reason is, freedom from self contradiction, and consonance with acknowledged truths in other provinces of human inquiry and belief. It is a remarkable fact, that the earlier forms of Trinitarianism are among the most metaphysical and speculative of any in dogmatic history. The controversy with the Arian and the Semi-Arian, brought out a statement and defense of the truth, not only upon scriptural but ontological grounds. Such a powerful dialectician as Athanasius, while thoroughly and intensely scriptural—while starting from the text of scripture, and subjecting it to a rigorous exegesis—did not hesitate to pursue the Arian and Semi-Arian dialectics to its most recondite fallacy in its subtlest recesses. If any one doubts this, let him read the four Orations of Athanasius, and his defence of the Nicene Decrees. In some sections of Christendom, it has been contended that the doctrine of the Trinity should be received without any attempt at all to establish its rationality and intrinsic necessity. In this case, the tenets of eternal generation and procession have been regarded as going beyond the Scri pture data, and if not positively rejected, have been thought to hinder rather than assist faith in three divine persons and one God. But the history of opinions shows that such sections of the church have not proved to be the strongest defenders of the Scripture statement, nor the most successful in keeping clear of the Sabellian, Arian, or even Socinian departure from it.

Internal and external data Essay

The Bowmer and Kirkland human reasources department will collect and use external labour market information for planning in the business. Unemployment statistics : The current labour market figures show that in the east midlands current unemployment is only 4.1%, this means Bowmer and Kirkland may have difficulty finding people to employ as so many already have a job. As the higher the unemployment rate the more people there will be for Bowmer and Kirkland to employ.The unemployment rate of the east midlands is 1% lower than that of the whole UK. In Derbyshire alone the unemployment rates are paticually low and numbers are still falling. Although rates are low, GDP per head still lags behind the UK and European averages, skill levels and productivity in manufacturing are also below average. 31.6% of people working in east midlands have no qualifications compared with 28.9% of England, so when Bowmer and Kirkland need to emply someone it will alot of the time also include the costs of training them up. So in conclusion the unemployment rates in the east midlands could cause a problem when it comes to Bowmer and Kirkland recruiting staff. For a start there are only 4.1% people avaliable to work, and they have got appreciate that not all that 4.1% will have the knowlage and skills recuired to work at Bowmer and Kirkland. This will result in costing Bowmer and Kirkland alot of time and money, mainly on training. One way of getting round the low unemployment rates would be to take staff they already have and train them up for hiarachy positions. Although this will leave another problem of having to find someone to fill their origional position, so they cant win really. Employment and Unemployment in the construction industry : In the last few years turnover has gone up and the ammount of people employed has remained static. The avaliability of contructors in the labour market is a problem to Bowmer and Kirkland as there are not alot of qualified workers out there so most of there employees have the standard ammount of GCSE’s and A-levels. However Bowmer and Kirkland can train people up. The business’ in the local area that Bowmer and Kirkland are compeating for for the same employees are, Thorntons, Denby pottery, Rolls royce, these are the major compaines in this area, but construction companies down to Birmingham also cause competition for workers. Internal information The Bowmer and Kirkland human reasources team will also collect and use Internal staffing information for planning in the business. Labour turnover : Bowmer and Kirkland measure Labour turnover because they believe it is important to know how many people they need in the business. This also allows them to be able to compare their figures to other industrys and see how they match up. From the figures they have 20% of people have left the company this year, the main few reasons people are leaving are to branch out and move on, some are only probation periods and dont have their contract renuied, and some could have been sacked or made redundant. Although saying that some of them sometimes come back to the company depending on why they left. If someone is wanting to leave they have to hand in a 4 week or week notice and have the exit interview. Bowmer and Kirkland do this so they can see if there is a trend in why people are leaving, then they may be able to do something about it. For example †¦ most of the leavers may be from one department, and it may narrow down to the fact they are all finding better paid jobs elsewhere, so then Bowmer and Kirkland can sort out that problem. Bowmer and Kirkland however see this as a good thing as this means they can bring in new people/staff and they will bring in new ideas to the company. Bowmer and Kirkland on average employ 20 – 25 new starters each month, the majority of them have minimum qualifications and 10% are usually apprentices, however Bowmer and Kirkland will train them up. Sickness and Accident rates : Bowmer and Kirkland dont compare their Sickness and Accident rates against the national average. However they compare it internally within the company. They have weekly reports to monitor staff absences and the health and safety department monitor all their staff accidents. Of course if someone is found to be having an unusual ammount of absences they will have to have words with them and see the reason behind this as it would not be good for the company. Age, Skills and Training : Bowmer and Kirkland look at their demographic trends. Within the company 92 % of their employees are male and only 8 % female, this is purly because of the concept of he industry, it is more appealing to the male population. Also new training scemes are being used more in Bowmer and Kirkland now so the older generation is being left behind slightly, for example†¦ Modern apprentaships.

The Natural Disasters That Affect A City Or A Country

Before I looked into this topic of these crazy natural disasters I did not know that much about Hurricanes and all that imply. When Br. Little gave me the option to choose whatever natural disaster case I want this was easily my first choice. I have used information from cites but will probably will most likely be quotes because I cannot summarize science all that much so if it looks like plagiarism it was not intended to be. As we were talking about it in class it really interested me and how much it can impact a city or a country. Hurricanes are so fascinating to me. As we were talking about it in class it really interested me and how much it can impact a city or a country. We get the term Hurricane from the word ‘Taino’ a Native American word meaning â€Å"evil spirit of the wind† (40 Facts About Hurricanes - Conserve Energy Future). 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