...RJCT Task 1 B1. Budgets and pro forma statements are very important to the success of the simulation. You needed to keep close track of your available funds, and it was also important to be able to predict how your expenditures would affect your success. Budgets are where we allot amounts to be spent in specific areas for the business. Without a budget, it is no doubt that spending would get out of control and the business would soon fail. Without a budget, I would have likely spent way too much on making and advertising my products in the simulation. It was great that each of these areas had a sort of guide when it came to how much was actually a good idea to spend. Pro forma statements are a sort of hypothetical or possible statement of the future based on certain inputs and factors. This was a great help in the simulation because it allows you to project possible future earnings, risks and so on. It also helped gauge whether or not our business in the simulation would be left with enough funds to continue. Both of these tools work hand in hand in an attempt to keep your company out of debt. I used these in the simulation to help me gauge just how much it might be wise to spend on things like expansion, inventory, and so on. I would decide if I had enough money to spend by keeping track of expenses in my budget, and then I would look at my pro forma statement to see what they would predict as the outcome of the quarter. This helped me decide whether or not to spend...
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...this fact, any adjustments made were in the rears ultimately costing the company money. Although, the company ended with a substantial cash balance and a small profit, sustainability, is crucial when looking forward at the broader picture. Who, what, where and how should be the rallying cry going forward. In this highly competitive marketplace the company must decide who is it’s ultimate customer, what it wants to be, a big, intermediate or small company and what it wants to produce, where it wants to sell and lastly how is this product going to manufactured profitably. This must be accomplished while maintaining a strong cash flow, a solid balance sheet along with a market plan that maintains and progressively increases market share. 1.) Reviewing the budgets and pro-forma The utilization of budgets and pro-forma are a must if a manager is to maintain positive...
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...JCT2 - Supply Chain Management This course supports the assessment for JCT2. The course covers 10 competencies and represents 3 competency units. Introduction Overview In this course, you will be challenged with learning about the integration of activities that comprise a supply chain, from manufacturing goods through retailer sales. Understanding and proactive management of a supply chain is a key skill set for today's business executive. This course focuses on supply chain and distribution channel decisions within a global environment. The Marketplace Business Fundamentals simulation will provide you with the opportunity to apply, in a setting that simulates a real-world environment, a variety of business decisions that must be made when managing a business as a component of a supply chain. Watch the following video for an introduction to this course: Note: View the video in full screen at 720p for best results. Competencies This course provides guidance to help you demonstrate the following 10 competencies: * Competency 326.1.5: Budgets The graduate utilizes budgets and a variety of pro-forma statements for planning and control purposes including analyzing cash flows to assure adequacy of funds for capitalizing on business opportunities. * Competency 327.3.1: Continuous Improvement and Quality Management The graduate applies quality management methods for continuous improvement and proposes various quality improvements in an organization. * Competency...
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