...Introduction to Accounting and Finance - Guidelines for Costing data Note: If you have already produced costing information for your assignment – just use this document to check that your costs are realistic in relation to your selling price. These guidelines are optional and intentionally very general. Marginal Costing Statement / Income Statement On average, the Cost of Sales for footwear is 58-62% of the sales figure. Cost of sales is the best estimate of variable cost, as this will include direct materials, direct labour and any direct overheads. If cost of sales is 58-62% of sales, then gross profit margin (gross profit as a percentage of sales) will be 38-42%. The net profit margin (net profit as a percentage of sales) for footwear is anything between 17% and 20%. The difference between gross profit margin and net profit margin will be a good estimate of fixed costs. (Remember to include depreciation in your fixed costs.) Other useful statistics: Direct materials is usually approximately 43-45% of sales figure Direct labour is usually approximately 15-17% of sales figure More about the Income Statement.. Cost of Sales: There are two options: 1. Use a simplified (trading) Cost of Sales which is just materials: Cost of Sales = opening inventory (which will be zero) + purchases – closing inventory I recommend you use Option 1 if you have not done any accounting before. 2. Calculate the cost of sales based on variable cost...
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...creating a new operating budget a decision had to consider the type of budget that would best fit the needs of the hospital. Since there is several financial management practices involved with creating an operating budget, we must understand which practice will help us create a budget that is substantial for the needs of Patton Fuller Community Hospital. The Patton Fuller Community Hospital Nursing Statistics provided information including cost of nurse per hour, cost of nurse per 24 hour day, number of nurses per patient, number of nurses per day, nursing cost per day, and nursing cost per month. This statistical budget is the basis of our budget creating process. We are able to identify patient volume and resource assumptions used in other budgets (Gapenski, 2008). The decision was to provide a $1 raise to our nursing staff. The effect of this raise is demonstrated in the simulated budget for January through December. We added the total costs from the $1 increase over the course of the year to the 2010 operating budget. With adding in the additional salary costs of $631 (in thousands) to the prior year salary and benefit costs, total expenses will increase 1.3% for a total of $468,756. As a result of the salary increase the operating and net income will be $8,485. Because of the increase in pay to the nurses Patton Fuller Community Hospital income will decrease slightly. By using the statistic budget in developing a new operating budget, we are able to effectively...
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... | |Assessment Code |HND Bus-Unit 2/Managing Finance May 2013 | |Hand Out Date |27th May 2013 |Hand In Date |26th July 2013 | |Lecturer(s) |Mr. Haider |Internal Verifier | | | |Mr. David Ogila | | | | |Mr. Daniel R. | | | |Sources of information |Course Notes / Slides / Activities / Handouts. | | |Recommended Learning Textbooks: | | |BPP Business Essentials Managing Finance | |...
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...Carlton Refour 1/11/15 Professor Keyes Personal Finance Discussion Case 1 Page 30 1. If I were serving as the couple’s financial advisor, I would first tell them to think and determine their financial health; Secondly I would tell them to establish their financial goals and know how much they need to save; Third I would advise the couple to map out and brainstorm a plan of action of keeping a budget. Next, I would tell them to install and execute their plan. The last thing for me to tell them would be for them to proofread and make sure their plan is ready to go. These steps are very important because they teach the basic guidelines in setting financial goals which will help Jimmy and Bethany calculate how much money they have and how much they will need to save for future items that intend to purchase. 2. The finance goals that I would determine to be the most important to Jimmy and Bethany are to purchase a house, set up a college fund for their children and start their own business. The least important are to finance a major vacation and to finance a vacation home. It would not be smart to invest in a vacation overseas or a vacation spot especially when you are trying to have children and purchase a home. They will be able to do that further down in life when their money will provide them to do so. 3. The four common concerns that should guide the development of their financial plan are manage the unplanned, accumulate wealth for special expenses...
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...INTRODUCTION: The budget preparation phase starts with the Development Budget Coordination Committee (DBCC). It is headed by the DBM Secretary and its members are the Secretary of Finance, the NEDA Director-General, and the Bangko Sentral Governor, with the Office of the President for general oversight. The NEDA provides the over-all macro-economic assumptions with which budgetary levels are to be determined. They involve the projected Gross National Product (GNP) real growth rates, inflation rates, 91-day treasury bill rates, the London Interbank Offered Rates (LIBOR) rates, foreign exchange rates, population growth, and other economic parameters. The Department of Finance (DOF), the Bureau of the Treasury, the Bureau of Internal Revenue and the Bureau of Customs help the DBCC in determining the sources of financing. They project the revenues that will be generated for the budget year as well as the borrowings that may have to be tapped. The DBCC determines the overall economic targets, expenditure levels, the revenue projection, deficit levels and the financing plan. It submits them to the President and the Cabinet for approval. Once these are approved, the DBM issues the Budget Call. This requires agencies to prepare their budgets in accordance with the said guidelines, macro-economic assumptions, and ceilings. The DBM spells out guidelines, procedures, and timetables. Agencies undertake their own internal consultations. They rank programs, projects and activities using...
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...REPORT ON THE INTERACTIVE SESSION OF FINANCE & ACCOUNTS DEPARTMENT, CORPORATE AFFAIRS COMMISSION Venue: KEFFI HEALTH CLUB, KEFFI. Date : 23rd January 2010 Climate setting for the program was tuned by the Deputy Director Final Accounts/Mrs.B.F.Ikhanoba. Samuel Archibong offered the opening prayers. The DD/FA introduced the Senior Executives present. The Acting DFA/Mr. M.U.Wambai delivered the opening remarks with a word that the aim of the forum is to develop human capacity. Declaring the interactive session open the DFA emphasized on participation by all present. • The first paper was presented by the Senior Manager, Final Accounts/ K.M.Jemaku. Titled: FIXED ASSET MANAGEMENT – OPERATION & CHALLENGES: It defined and classified fixed assets, their management, depreciation and disposal. The management of Fixed Assets was noted to be a huge challenge to Finance & Accounts Department because of the many lapses imminent. The Sun System Fixed Assets module captured most of the detail data identifying an asset, and provides information automatically. Each asset is then assigned a code to further give the required peculiarity in the database. The presenter identified the challenges as follows; - Time lag between coding and labeling of assets. - Difficulty in tracing assets to assigned locations. - Failure to code some assets making disposal difficult. - Inability to reconcile physical assets with the register. Other issues relating to management of Fixed...
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...Policy Research Institute, Ministry of Finance, Japan, Public Policy Review, Vol.8, No.1, June 2012 45 Public Sector Accounting - An Interdisciplinary Field Involving Accounting, Economics, and Jurisprudence 1 Ryosuke Tao Research Fellow, Institute of Administrative Management Abstract Public sector accounting has recently been improved. Currently, there are requirements to disclose stock information in addition to the flow information presented in budget statements or accounts statements. Public sectors have prepared and disclosed their financial statements (including balance sheets and income statements) based on business accounting approaches. Moreover, as a matter of policy, the government tends to prepare and disclose cost information along with the financial statements for the individual ministries and governmental agencies. The objectives of clarifying the fiscal conditions in a state through the preparation and disclosure of financial statements are to fulfill the state’s accountability to its citizenry and market participants and to optimize and enhance the efficiency of its fiscal activities. Most importantly, the improved information should contribute to democratic decisions on public finance. A perspective different from the business accounting is that public sector accounting places more emphasis on inter-generational fairness. With respect to the inter-generational benefits and burdens, however, various factors must be considered, and the differences between...
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...Michael Shin Reporting practices and ethics Financial reporting practices are necessary in any successful business. They are used to keep track of a business finances, and to make sure the business is following legal and ethical standards. There are four elements to financial management; they are planning, controlling, organizing/directing, and decision making. Each of these plays a vital role in correctly reporting finances. Furthermore, there are principles in accounting for healthcare that help reiterate the reporting practices. Generally acceptable accounting principles or GAAP are certain guidelines that are used to make sure a business’s finances are reported properly. Hospitals may use some or all of them, but it is a guideline, not a requirement. One of the principles is the principle of sincerity. This means that when reporting financial activity, the accountant should sincerely picture post an accurate picture of revenue, expenses, and other monetary uses. For example, if a medical office is going bankrupt and needs a loan, if they are not sincere in their financial statements, they may lie in their records by showing they are making profit instead of being in debt. Another general principle is the principle of prudence. This means accountants should accurately put a clear picture of a company’s finances, and not try to make the companies funds seem greater than they are. This can also tie in to the principle of sincerity which was discussed previously. Principle...
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...------------------------------------------------- Background This course is designed for government officials, development consultants and practitioners, students of development, and those who have keen interest in governance and financial management. Nowadays, effective public financial management is considered critical in combating corruption, alleviating poverty, and ensuring the effective use of internal and external resources. This course is a fundamental course that aims to provide basic understanding of effective public financial management systems to the participants in a better, quicker and efficient way by making them familiar with various internal and external techniques available to strengthen the fiscal transparency and management that is catalyst for economic growth and development. This UNITAR e-learning course will give a holistic overview of the concept and techniques of public financial management. The course will discuss the role of internal controls and audit system as well as the role of external audits in ensuring efficiency and integrity in public financial management and in combating corruption. The course is designed especially for public officials and development practitioners, but is also open to the general public who want to be aware of public financial management instruments and techniques. Some previous knowledge of public financial management and familiarity with financial concepts will be assumed in this course. ------------------------------------------------- ...
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...tmentMBA Education & Careers Eco Fundas for you What is Disinvestment? Quick Fact government also hands over management control to private parties, it is termed ‘privatisation’. Ever since India launched the New Economic Policy (NEP) in July 1991, disinvestment has been an important policy area. Also, in recent years the issue of disinvestment has come to the fore due to the large scale fiscal deficit that the government has been running up. While presenting this year’s Union Budget, Finance Minister P. Chidambaram proposed estimated divestment proceeds of 40,000 crore for 2013-14, even when the Economic Survey released a few days before the Budget, had suggested that the Government should try to raise at least 25,000 crore every year by divesting its stake in state-run companies to meet the burgeoning fiscal deficit. The Rangarajan Committee expressed the view that in the case of PSUs for which the first sale is yet to be made or where the track record is yet to be established, two methods are recommended: (a) the method of sale by fixing a predetermined share price, and (b) the method of sale through auction among a pre-determined clientele (by way of shortlisting through tenders) as two acceptable and transparent processes for divestiture. In addition, it also identified a third method of transfer of controlling interest in an enterprise to a specific firm or person. It noted that all these methods have their merits and demerits; provide better quality services; reduce...
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...Name Assessor Date issued 29/09/2015 Internal Verifier MUHAMAMD SAJID Task 1 / Task 2 F Khan Task 3 / Task 4 Week 8 Week 14 Assignment title Learning Outcome Corporate finance in decision making Assessment In this assignment you will have the opportunity to Criteria present evidence that shows you are able to: Task no LO1 Understand the sources of finance available to a Business 1.1 identify the sources of finance available to a business 1 1.2 assess the implications of the different sources 1 1.3 1 2.1 evaluate appropriate sources of finance for a business project analyse the costs of different sources of finance 2.2 explain the importance of financial planning 2 2.3 2 2.4 assess the information needs of different decision makers explain the impact of finance on the financial statements 3.1 analyse budgets and make appropriate decisions 3 3.2 explain the calculation of unit costs and make pricing 3 3.3 assess the viability of a project using investment appraisal techniques 3 4.1 discuss the main financial statements 4 4.2 compare appropriate formats of financial statements for different types of business 4 4.3 interpret financial statements using appropriate ratios and comparisons, both internal and external. 4 LO2 Understand the implications of finance as a resource within a business LO3 Be able to make financial decisions based on financial information LO4 Be able to evaluate the financial performance of a business Evidence...
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...west region to make ABS as a major pan Canadian insurer. As the merger took place there was a lot of inefficiency in field of operation, finance, HR and marketing & sales. Jean Roberge decided to provide an integrated management system which could be used for financial, HR, operations and marketing & sales will bring out the efficiency as Roberge see a high potential in this. As of now all the three companies are operating with their own systems, own work policies so they feel the need of reengineering with the help of an integrated system. For the restricting the work system a great deal of manual work is required from all the three companies to prepare a consolidated report so that Roberge could exactly know the condition of financial & human resource of ABS. Moreover, in case of marketing & sales collecting the data and consolidating was a big challenge for them as the information of all the three companies was high and diversified. The major challenges for Jean Roberge were: a. To collect the data of all the three companies and then to design a structured plan for the project. b. To make a team of people who can work and increase the efficiency. c. To hire a project leader who is well equipped with the qualities which could help ABS could increase the efficiency and guide its team members well. d. Roberge was also concerned about the budget, so he is looking a...
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...ACCOUNTING TRANSPARENCY Charles Katoroogo Prof Brandy Havens ACC 303 12/1/2013 ACCOUNTING TRANSPARENCY Accounting is mainly concerned with general rules, concepts and principles that are established with the purpose of governing different fields of financial reporting. Accounting principles are also known as accounting principles and guidelines, these acts as the base on which more complex and critical rules are based. The authority responsible for issuing the accounting standards (i.e. financial accounting standard board) also uses these basic principles to formulate the accounting standards in a more efficient manner. Generally accepted accounting principles (GAAP) consist of various rules and principles which are used for preparing the financial statements. GAAP consist of three important fields:- 1) Basic accounting principles and guidelines. 2) Various accounting standards issued by FASB. 3) Generally accepted practices in the industry. All those companies which are providing its financial statement to public is required to follow the GAAP while preparing the financial statements. Further, if the company is a listed entity then the federal law of the nation requires the company to get its accounts audited by an independent certified public accountant. There has been various corporate scams in past years which has made it compulsory for the regulatory bodies to create various laws and amend the existing laws so that more accurate and transparent financial...
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...As the merger took place there was a lot of inefficiency in field of operation, finance, HR and marketing & sales. Jean Roberge decided to provide an integrated management system which could be used for financial, HR, operations and marketing & sales will bring out the efficiency as Roberge see a high potential in this. As of now all the three companies are operating with their own systems, own work policies so they feel the need of reengineering with the help of an integrated system. For the restricting the work system a great deal of manual work is required from all the three companies to prepare a consolidated report so that Roberge could exactly know the condition of financial & human resource of ABS. Moreover, in case of marketing & sales collecting the data and consolidating was a big challenge for them as the information of all the three companies was high and diversified. The major challenges for Jean Roberge were: a. To collect the data of all the three companies and then to design a structured plan for the project. b. To make a team of people who can work and increase the efficiency. c. To hire a project leader who is well equipped with the qualities which could help ABS could increase the efficiency and guide its team members well. d. Roberge was also concerned about the budget, so he is looking a leader who has a blend completing the work on time while keeping the budget. 2. In your opinion, does the project have other characteristics or...
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...state. When looking at private security at the international level in those as an example working with Department of Defense or Department of State and many other government agencies, private security must adhere to federal mandates in regards to training, continued training which could be testing to ensure that employees are meeting the standards based on the contract, and the assurance that employees are abiding by company and federal guidelines. However, the focus of this paper is exploring the legal authority and licensing requirements for the private security in the state of Virginia. Overview of the Department of Criminal Justice Services for the State of Virginia The commonwealth of Virginia created the department of criminal justice services for the purpose of providing guidelines for the private sector in regards to state mandates based on the type of security whether it be unarmed, armed, executive protection, K-9 units, and many more security assets not listed. The department of criminal justice services also provides a guideline for law enforcement in identifying what the private sector can legally act upon as well as how they can be utilized for assisting law enforcement officers as a whole. Training and Standards “The purpose of Department of Criminal Justice Services (DCJS) policies is to ensure compliance with all statutes and Administrative Codes, Committee on Training (COT) approved performance outcomes and requirements pertaining to; administration,...
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