An organization needs financial resources to run the operations. These resources form different types ranging from internal to external and then come in many kinds. The type of source of finance that any particular organization uses depends upon the need, objective, size, policy and capital structure of the organization. Below are highlighted some main sources of finance: Internal sources: As the name signifies, these sources are generated from within the organization and could come from ei...

Since budgetary process involves entire organization and its functions, conflicts often arise among different functions. The objective of budgeting is not to get functions work in isolation. Rather budget should be goal congruent meaning all functional budgets should be in harmony with the overall business strategy and mission of the management. Below are few examples of how conflicts can arise and how to minimize them:   Please click the paypal icon below to receive CMI Level 5, Unit...

Building on the example of XYZ Company in task A.C.2.2 the management will now look for reasons that lead to unfavorable variance. One of the following could be the reason: Budget estimates were built on unrealistic assumptions In efficiency of the workers and the foremen that resulted in laborers sitting idle or taking unnecessary breaks Inefficiency of procurement function in negotiating the hourly rate The above variance analysis is reflective of a report at the end of a product...

The below variance analysis shows that to produce 46 500 concrete blocks XYZ Company over spent AED 52 250 on labor cost or 7% overall. A further analysis by block type reveals that block type B, C and D have unfavorable variance while block A and E have favorable variance. Also notice there are two type of variances i.e., hours spent and hourly rate. Block type B and D have labor hour variances meaning the actual hours spent on these block types are more than budgeted. While block type C and E ...

Budget is a short term tool that is a reflection of management’s longer term goals translated into more actionable or operational activities. Typically budgetary cycles are annual. The purpose of a budget is to exercise control and discipline the organizational activities to reach the goals set by the management. A typical budget process is outlined below: Budget planning: This is the first phase of a budgetary process where the management sets the agenda for budgeting process. Typically ac...

Following set of financial statements is used to analyze the financial information: ABC Company Limited Profit & loss account For the year ended Dec 31, 2016 Pounds Sales            613 633 Cost of sales          (368 180) Gross profit            245 453 Operating expenses          (134 999) Operating profit            110 454 Income tax (30%)             (33 136) Net profit              77 318     ...

System of accounts: The best way to describe the system of accounts is to understand what it does and what purpose it serves. Accounting is an art of: RECORDING the economic transactions CLASSIFYING the transactions in a significant manner SUMMARIZING them in financial statements INTERPRETING the results   Reference: What is Accounting? Definition and Meaning - AccountingVerse. (n.d.). Retrieved December 15, 2017, from http://www.accountingverse.com/accounting-basics/...

The financial function is the bloodstream of any organization regardless of size, type and ownership structure. Though the importance of financial excellence is usually associated with business organizations that exist to make profit for their owners, the significance of an effective financial system cannot be undermined for not-for-profit (NFP) organizations as these organizations need to ensure the expenditures are controlled and are in line with the overall objective of the NFP. To assess ...

Question Answer different questions based on provided case studies Solution Case A Question A1: What is the likely underlying cause of the abnormal LFT in Mr White? The liver performs distinct forms of biochemical, synthetic and excretory functions and as such there lacks any single biochemical test for detecting the global functions of a liver. These findings by Thapa and Walia (2007) point out that many diseases and conditions could lead to elevated liver enzymes which are an in...

Question This is the  7MER-Managing Employee Relations. The major focus is on the case study of Peddie which is an organisation that is being faced by different employee relations issues. Solution Executive summary This report has provided an analysis of the employment relations that are common in the modern organisation practice. These relations have been identified as both individual and collective relationships in workplace which inform on the need of assisting the line managers t...