Investment Appraisal assesses attractiveness of different capital projects. Projects usually involve a high expenditure and cannot be reversed.
Posts published in “FINANCE”
Investment is needed to earn profit for the business! Business organizations, both in the private sector and the public sector, make investment decisions.
Setting business budgets and measuring performance against budgets is a very important management function. Budgeting has both advantages and disadvantages.
The most widely used types of budgeting include: Fixed Budgeting (Zero Budgeting and Incremental Budgeting) and Flexible Budgeting.
The process of comparing the actual performance of a business with the budgeted numbers is known as Variance Analysis. What is a variance?
There are many ways to set budgets by a business. These methods may have to be negotiated as there is a natural tendency for managers to inflate budgets.
SMART Budgeting enables a business to have better cost control as costs clearly increase with business expansion. How to Do It?
Setting budgets and agreeing financial targets for each section of a business will have many benefits. The primary benefit is the ability to measure the performance.
The Chief Financial Officer (CFO) of a business is in charge of preparing budgets for the whole firm. He is the person in charge of the Finance Department.
Budgeting is specific financial planning into the future for the whole business, agreeing to the plans, and then following them through the year.
As personal managers of our own life and business managers of our companies, each and every one of us should plan future finances to some degree – do budgeting.
Window Dressing includes presenting financial information of a business in a way that it improves only the ‘appearance’ of the firm’s performance
While stakeholders in a business organization have a use for the published Final Accounts, different stakeholder groups have unequal access to information.
While we as business managers have already known how to solve Cash Flow problems, it is better to prevent the diseases than cure it.
Cash Flow Forecast helps to ensure that the Cash Flow position of a firm is carefully monitored to identify any potential problems before they occur.
The main aim when solving Cash Flow problems is to improve the cash position of the business, not to increase sales revenue or maximize profits.