Managing Financial Principles and Techniques

Topics: Management accounting, Costs, Cost Pages: 42 (6969 words) Published: May 19, 2015


Table of Contents
Introduction................................................................................................................................................... 3

1.1 Importance of costs in the pricing strategy of Tip Top ............................................................................... 3

1.2 Design a costing system.......................................................................................................................... 4

1.3 Propose improvements to the costing and pricing systems ..................................................................... 5

References..................................................................................................................................................... 6

2.2. Assess the sources of Funds................................................................................................................... 8

3.1 Appropriate budgetary targets for Tip Top ................................................................................................. 8

3.2. Creation of master budget ...................................................................................................................... 9

3.3 Compare the Actual Expenditure and income with master budget Tip Top .............................................. 9

3.4 Evaluate budgetary monitoring processes............................................................................................. 10

References................................................................................................................................................... 11

Appendix 1 Sales Forecast.......................................................................................................................... 12

Appendix 2 Operating cost breakdown....................................................................................................... 12

Appendix 3 Financial Budget ..................................................................................................................... 13

Appendix 4 Cash Budget ............................................................................................................................ 13

4.1 Recommend Processes that could manage cost reduction.................................................................... 14

4.2 Evaluate the potential for the use of Activity-based costing................................................................. 15

References................................................................................................................................................... 17

Appendix an Absorption costing................................................................................................................. 18

Appendix B Activities Based costing ......................................................................................................... 19

5.1 Financial appraisal methods to analyses competing investment projects ............................................. 20

5.2 Make a justified strategic investment decision for Tip Top ...................................................................... 21

5.3 Report on the appropriateness of a strategic investment decision........................................................ 22

References................................................................................................................................................... 23

Appendix 1 Cash Flow................................................................................................................................ 24

Appendix 2 Net Present Value.................................................................................................................... 24

Appendix 3 Internal Rate of Return...


References: Corporation, S. B. D., 2012. Liquidity Ratios. [Online]
Available at: http://www.smallbusiness.wa.gov.au/liquidity-ratios
Housing, T. R. o. C., 2009. Financial viability. [Online]
Available at: http://www.rch.nsw.gov.au/NR/rdonlyres/F54F4338-56D4-4753-A6D7-
Karunakar Patra, J. K. P., 2006. Accounting & Finance for Management. 1st Ed. New Delhi: Syrup and
Sons.
Morningstar, 2012. Mark & Tip Top Group Plc.-MKS. [Online] Available at: http://tools.morningstar.co.uk/uk/stockreport/default.aspx? Tab=10&vw=BS&SecurityToken=0P00007OL2
] 3]0] E0WWE$$Algid=0P00007OL2&ClientFund=0&CurrencyId=GBP [Accessed 20 11 2012].
Tip Top, M. a., 2012. Annual Report 2012, sol.: Royal Print.
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