M4-Analyse the Reasons Why Cocts Need to Be Controlled

In: Business and Management

Submitted By Daveme1234
Words 985
Pages 4
M4-Analyse the reasons why costs need to be controlled to budget.
In my report I’m going to analyse the reasons why costs need to be controlled and why businesses set budgets as targets or limits. I am also going to use the figures from the income and expenditure for the business Hairliners and going to explain the reasons why Headliners needs to use a budget to control their costs.
Costs and budgets need to be controlled in order to know what is received and spend. For instance, if costs and budgets are not controlled when running a business, then it will run the risk of spending more money than it is taking or not spending enough money to grow the business and compete. The reason organisation needs to control their costs properly would be that it would end up saving money on expenses and increase its revenue. This will help the company to increase its revenues and this would allow the company to invest more money if required.
The business should control its costs so that it saves money and by having the right amount of stock the business can then have the full benefits of selling those stocks and receiving cash which could be used for other areas of the business or buy more stock if they are confident they can sell it all. A budget divides your expenses into overhead and production costs. Overhead costs are operating expenses such as phones, insurance, marketing and rent. If you don’t know your overhead and production costs for each unit of a product you produce you can’t set prices for your customers.
Variance analysis-Explaining the difference between actual costs and the sales revenue for the goods to be sold.
Favourable variances- a favourable variance occurs when the actual revenues are greater than the budgeted or standard revenues.
Adverse variances-Adverse revenue means the company earned less revenue than expected.
Monitoring variances is important…...

Similar Documents

Why Do People Need God?

...Religions in the 21st century- Why do people need God? In this 21st century of science and technology, many changes can be observed, compared to a few centuries ago. Especially, the significance of science has increased our generation to ask for evidence and logical explanations for many things that exist in our current world. Also, with the increased rate of literacy and education level compared to centuries ago, people are not as naïve as those in the past, believing in superstitions, myths and legends. Table 1: the literacy rate of the world as of 2 February 2010, 14:43 (http://upload.wikimedia.org/wikipedia/commons/0/07/World_literacy_map_UNHD_2007_2008.png) With the high rate of literacy across the world, as seen in Table 1, we would think that the religion for the educated- 21st century people would be majoring in Atheism. Atheism follows the idea of no God or divine bring. Their beliefs about the universe are usually based on scientific findings. They do not believe in afterlife, thus to them, this one life is of great importance. Only humans can help themselves and each other to solve the world’s problems. However, this is not true, as seen in Table 2 below. Table 2: the approximate number of adherents worldwide for the most common seen religions (http://www.religionfacts.com/big_religion_chart.htm) Religion/Sect/ Belief system | Adherents Worldwide (approx.) | Atheism | 1.1 billion (this figure includes agnostic and non-religious, which tend to be grouped...

Words: 835 - Pages: 4

Analyse the Reasons Why Costs Need to Be Controlled to Budget

...M4 - Analyse the reasons why costs need to be controlled to budget? Introduction: For this task I will be analysing the advantages and disadvantages about the business that Brad owns which involves transporting business people to and from airports using luxury cars and limousines. Addition to this I will also be explaining what the words budget, fixed, variable and total costs mean. One of the main topics that I will be covering is the fact that if Brad does nothing with his costs what the implication would be on the business as well as him and what encounters it will have. Budget: So what is budget? Budget is a financial document which is used to project future income and expenses. Budgeting is used by everyone who owns a business whether it’d be a large or small business; it is a crucial part of the finance side of the business. The process may be carried out by individuals or by companies to estimate whether the company is keeping within their budget and not over spending. The process for preparing a monthly budget includes: * Listing of all sources of monthly income. * Fixed expenses such as rent/mortgage, utilities, phone bills. * Listing of other possible and variable expenses. A business will always choose how much they are to spend on their resources etc from their budget which is calculated when the business starts. A budget may be prepared simply using paper and pencil, or on computer using a spreadsheet program like......

Words: 1205 - Pages: 5

Ten Reasons Why People Life Need to Get Better.

...This step results in isolating the x on one side of the equation. x + 2 = 5 x + 2 ( 2) = 5 x = 3 ( 2) x + 0 = 3 Given equation Add -2 to each side. Addition of real numbers Additive identity ISBN 1-256-49082-2 Beginning and Intermediate Algebra with Applications & Visualization, Third edition, by Gary K. Rockswold and Terry A. Krieger. Published by Addison Wesley. Copyright © 2013 by Pearson Education, Inc. 92 CHAPTER 2 LINEAR EQUATIONS AND INEQUALITIES These four equations (on the bottom of the previous page) are equivalent, but the solution is easiest to see in the last equation. When 2 is added to each side of the given equation, the addition property of equality is used. ADDITION PROPERTY OF EQUALITY READING CHECK • Why do we use the addition property of equality? If a, b, and c are real numbers, then a = b is equivalent to a + c = b + c. That is, adding the same number to each side of an equation results in an equivalent equation. NOTE: Because any subtraction problem can be changed to an addition problem, the addition property of equality also works for subtraction. That is, if the same number is subtracted from each side of an equation, the result is an equivalent equation. EXAMPLE 1 Using the addition property of equality Solve each equation. (a) x + 10 = 7 (b) t - 4 = 3 (c) 1 = - 3 + y 2 4 Solution (a) When solving an equation, we try to isolate the variable on one side of the equation. If we add - 10 to (or subtract 10 from)......

Words: 32187 - Pages: 129

Reasons Why People Lie

...CH 11 What are the reasons why people lie in Organizations? Lying is sometimes a result from a barrier that is unable to overcome in a organization. These barriers can be talking on the phone, sending emails, gossip, ect. There are many things that a person can lie about in an organization. They could lie about a mistake they made, take credit for something they did not do, lie about communicating internally/externally, or just to save themselves from being punished. These lies are a way to protect ones self from being viewed as a bad asset to the company or organization. Many times when a person is lying to cover up for something they will throw in some curve balls. These curve balls can be true statements or actions the person says in their lie to make it seem more true. For example, if an employee is lying about sending out a shipment late, they may say that the shipment order was filled out and completed and delivered, but it was not delivered. The truth of filling out the shipping document is true but delivering the document is a lie. This little truth in ones lie may make them feel better about the lie and make it more believable. I have not really experienced someone lying to me in a workplace situation but I assume it would be very difficult. It is hard to tell someone that they are lying and get the truth out of them. The only case I can think of was I had a member in a group for school who continuously lied about being late to meeting and not......

Words: 324 - Pages: 2

Drug Abuse and the Reasons Why

...Introduction Many questions have been raised about why people start using and abusing drugs and alcohol. Many people have spent time and effort researching these questions and have come up with common answers depending on which way a person is looking at the question. I am looking at this question from both a mental and emotional view. Drug and alcohol abuse has many definitions. Some may say that a person who drinks before noon is an alcoholic or someone who uses “street drugs” is a drug addict, but the truth is that anyone can be a drug addict or alcoholic. In my personal definition; a person who is mentally, emotionally or psychically dependent upon a substance is an addict. It does not matter if the substance is alcohol, “street drugs”, or prescription medication. Addiction can take the form of many different shapes, sizes, and races. The history of drug abuse dates back as far as time itself. The human race has always searched for things to help them feel relaxed, stimulated or increase energy and reduce the amounts of daily stress. Drug abuse history can be traced back to home remedies that people thought would cure these types of aliments. One form of abuse was alcohol and was discovered through farming and fermentation of fruits and grains. Indians and other native people used natural remedies like marijuana and natural hallucinogenic to reach out and speak with their spirit guides. When choosing this topic, I thought carefully about my past experience and the......

Words: 1501 - Pages: 7

Analyse the Reasons Why Costs Need to Be Controlled to Budget

...Unit 5 Introduction to Accounting D1 L & S Ltd When experiencing cash flow problems there are a few recommendations to make, these problems include: • Being overdrawn on consecutive months. • Having too much money • Difficulty in predicting costs When being overdrawn on consecutive months you should look to cut back on immediate expenses such as insurance, suppliers, rent and employees. You could also increase product prices however you have to bare in mind whether the customers will pay that little bit extra to pay for the product. Another option, but more risky, is to gain more credit from creditors but this will bring interest costs and adds another liability for the future. When having too much money in a cash flow you should reinvest the capital back into the business in order to advance in technology, assets or staff. This will help the company move forward and improve the service offered to consumers. Another option is to put the money in a savings account, premium bonds or shares. This will provide more interest on your money and let it grow instead of letting it just sit around gathering dust. The final problem, difficulty in predicting cash flow costs, should be resolved by asking your sale assistants, doing market research or asking an experienced accountant for guidance. You should ask your sale assistants because they are the people on the ground floor and know what’s going on, what the customers like and what products fly off the......

Words: 1318 - Pages: 6

Reasons for Individual Learning Needs

...3 reasons for individual learning needs Newly promoted assessor to be trained on the new webchat assessment form (lateral move) – The newly promoted Assessor, who was assessing calls will have to be trained on the scoring criteria and the new assessment form as they will be assessing the webchats, providing feedback and coaching individuals in the team. The assessor will also attend webchat calibration/ moderation session to ensure their scoring is in line as per the webchat guidance notes. Employees starting a new role, who are newly promoted, or have had a change in responsibilities will require training and support, which would help them gain the required knowledge and skills to help boost their confidence. Training delivery on webchat is another learning need that is identified. The trainer must not only be trained on the new webchat system but also on the process to be able to understand how the team handles any webchat queries. This will ensure that they understand the system functionalities which in turn will enable them to train the new starters. The trainer will attend Train the Trainer session and will also receive 1x1 feedback and support. Individual’s performance - Money Advisers scoring below 80% in their Quality Scores in any quarter, would require further support and training depending on their performance and areas of development. They would be taken off the phones and would attend customised training, receive 1x1 feedbacks and coaching. The objective......

Words: 365 - Pages: 2

Reasons Why Managers Need to Be Acquainted with Programming, Web Source Code, and Technology.

...benefits and limitations (Meyers, 2011). The explosion of technology has led to an economic globalization where the transmission of information is no longer limited by space and time. Managers must continually utilize this flow of information efficiently to maximize their performance. In conclusion, in a technology fueled economy, it’s apparent that a manager must be tech-savvy if they want to remain marketable and beneficial to whichever organization they serve. REFERENCES Ebrahimi, Alireza (2005). Why Managers Should Become Better Acquainted With Programming Issues, Web Source Code, and Technology?, The International Journal of Applied Management and Technology, Vol 3, Num 2, 1. Berkun, Scott (2010). Should managers know how to code? http://scottberkun.com/2010/should-managers-know-how-to-code/ Meyers, Andrew (2011) Managers Need to Keep Up With Changing Technology. http://www.facilitiesnet.com/maintenanceoperations/article/Managers-Need-to-Keep-up-with-Changing-Technology--12434#...

Words: 490 - Pages: 2

13 Reasons Why

...specifically why my life ended. And if you’re listening to these tapes,you’re one of the reasons why: I’m not saying which tape brings you into the story, But fear not,if you received this lovely little box,your name will pop up… I promise. The rules are pretty simple. There are only two. Rule number one: You listen. Rule number two: You pass it on. Hopefully,neither one will be easy for you. When you’re done listening to all thirteen sides-because there are thirteen sides to every story-rewind the tape,put them back in the box and pass them on to whoever follows your little tale. And you,lucky number thirteen,you can take the tapes straight to hell. Depending on your religion,maybe I’ll see you there. In case you’re tempted to break the rules,understand that I did make a copy of these tapes. These copies will be released in a very public manner if this package doesn't make it through all of you. This was not a spur-of-the-moment decision. Do not take me for granted…again. You are being watched. I almost forgot. If you’re on my list,you should’v received a map. Throughout the tapes,I’ll be mentioning several spots of our beloved city for you to visit. I can’t force you to go there,but if you’d like a little more insight,just head for the stars. Or,if you’d like,just throw the maps away and I’ll never know. Or maybe I will. I’m not actually sure how this whole dead thing works. Who knows maybe I’m standing behind you,right now. CASSETTE 1: SIDE A REASON 1:......

Words: 2752 - Pages: 12

10 Reasons Why We Don’t Need Gm Foods

...10 REASONS WHY we don’t need GM foods With the cost of food skyrocketing – hitting not just shoppers but the poor and hungry in the developing world – genetically modified (GM) foods are once again being promoted as the way to feed the world. But this is little short of a confidence trick. Far from needing more GM foods, there are urgent reasons why we need to ban them altogether. 1. GM foods won’t solve the food crisis A 2008 World Bank report concluded that increased biofuel production is the major cause of the increase in food prices.1 GM giant Monsanto has been at the heart of the lobbying for biofuels (crops grown for fuel rather than food) — while profiting enormously from the resulting food crisis and using it as a PR opportunity to promote GM foods! “The climate crisis was used to boost biofuels, helping to create the food crisis; and now the food crisis is being used to revive the fortunes of the GM industry.” — Daniel Howden, Africa correspondent of The Independent2 “The cynic in me thinks that they’re just using the current food crisis and the fuel crisis as a springboard to push GM crops back on to the public agenda. I understand why they’re doing it, but the danger is that if they’re making these claims about GM crops solving the problem of drought or feeding the world, that’s bullshit.” – Prof Denis Murphy, head of biotechnology at the University of Glamorgan in Wales3 commercialization, genetic engineering has failed to significantly increase US crop......

Words: 2312 - Pages: 10

M4; Why Do Budgets and Costs Need to Be Controlled

...will need to show proof that it is you and credit records so they know that you will pay them back on time. Advantages of a Bank Loan: * Convenient and accessible- Banks are always accessible since they are used regularly for depositing savings or withdrawing them. After being bank customers for years, the bank becomes convenient and familiar, and personalized service makes it the first place to consider for a loan. * Multiple Loan options- All banks advertise various types of schemes to woo entrepreneurs setting up or running a business. The real earnings for a bank come from the interest they charge on these loans. Options like term loans, standard business loans and others are available for the entrepreneur. * Non profit sharing- Venture capitalists and angel investors agree to provide a loan in exchange for part ownership, the right to influence decision making and a share of the profits. Banks do not ask for any of these. If they do sanction a loan, they are only interested in getting their interest and partial loan payment instalments. * Lower rates of interest-Though tough to get, banks provide loans at lower rates of interest than other lending agencies and instruments like credit cards. * Bank loans offer tax benefits- Small businesses taking loans from banks enjoy some relief from tax, since the percentage of profits used to repay the loan is exempted from tax. Disadvantages of a Bank Loan: * Lengthy application process- banks need to......

Words: 2853 - Pages: 12

Analyse the Possible Reasons Why Kevar Travel Plc. Wished to Make Its Workforce More Flexible? (18 Marks)

...There are several possible reasons for why Kevar Travel Plc would benefit from a flexible workforce. Flexible workforces exist when businesses place less reliance upon permanent full-time employees and make greater use of part-time and temporary workers. Implementing a core and peripheral strategy is one way to make the workforce more flexible. This is because it allows them to gain a core of skilled workers which are all kept on permanent full time contracts which keeps them motivated and secure within the company so they stay which is beneficial as it means lower levels of having to train to high levels. The peripheral aspect of the strategy allows them to hire when necessary whether its unskilled staff to account for increased demand or highly skilled staff for specialist problems. This is beneficial as it means they don’t have to employ all their staff permanently whilst still allowing them to respond to the flucations in demand for cheap holidays. Kevar Travel Plc has seen a high degree of fluctuation with demand for its product. This is due to seasonal demands, competitive power from rivals and also consumer tastes and fashions regarding holidays over recent years. A strategy that was proposed was to make the workforce more flexible. One way in which they implemented this is the relocation of head office from London to Stoke. They would then go on to create a new workforce plan, which would achieve more flexibility within the workplace, this was done......

Words: 850 - Pages: 4

Thirteen Reasons Why

...Donya Zolfaghari Mrs. Tymoshenko ENG2D1-02 December 4, 2013 Thirteen Reasons Why Cesare Pavese, an incredible poet once said, “Nowadays, suicide is just a way of disappearing. It is carried out timidly, quietly, and falls flat. It is no longer an action, only a submission.” Suicide is becoming a very serious issue in our society, as it is becoming an extremely common and unfortunate event that occurs in the life of many teenagers. Often, teenagers resort to suicide as their solution to end the pain and struggles they are forced to endure. The powerful and thought provoking novel Thirteen Reasons Why written by Jay Asher, explores the themes of suicide and depression while teaching teenagers significant morals throughout it. This heartfelt book explains the life of a teenage girl by the name of Hannah Baker, who to everyone’s surprise, commits suicide. However, before taking her own life, she creates 13 tapes, each with a reason that caused her to end her life, and each targets one specific person, then sends them out to the people who contributed to her decision. It is told through the perspective of Clay Jenson, a former crush of Hannah’s, who is also the eighth person to receive the tapes, and must listen to her tapes to understand his role in her decision while he witnesses the pain and hardships Hannah went through. The exceptional examples of symbolism throughout the novel represent the everlasting results of other people’s decisions on Hannah’s life. In......

Words: 1719 - Pages: 7

Reason Why

...I think the reason why HUM115, Critical Thinking is offered at Davidson Community College because critical thinking to be purposeful, self-regulatory judgment which results in interpretation. As it right now, I am using critical thinking to write this forum. Asking myself questions on how to start this forum? What should be added on? Critical thinking can be used to take charge of student’s daily life. As students can learn to think more critically, as they become more proficient at historical, scientific, and mathematical thinking. We as students can develop skills, abilities, and values crucial to be success in everyday life. Like in the textbook says, “To think critically, people must be willing to examine their thinking and put it to some stern tests.” Critical thinking is important in our everyday life. Students can use critical thinking to solve problems or answer questions. Basically, students uses critical thinking every day at school. I’m attending Davidson Community College for my Associates in Medical Assisting and I know I will be using a lot of critical thinking in the health field. Every moment of my life, I use critical thinking about my problems and issues. This online class is my first online class ever. I have never attended online classes before. I do not know what to expect but just to make sure I do my assignments online and checking my Moodle and email to make sure I am on track. Online class students have more time to reflect on responses and practice......

Words: 431 - Pages: 2

Business Communication - Analyse the Reasons for Arvind Pandey’s Dilemma.

...appropriateness of the sender’s tone to a customer. 2. Point out the old – fashioned phrases and expressions. 3. Rewrite the reply according to the principles of effective writing in business Questions : 1. What is non – verbal communication ? Why do you suppose that this commercial relies primarily on non-verbal communication between a young man and a gorgeous woman ? What types of non – verbal communication are being used in this case ? 2. Would any of the non-verbal communications in this spot (ad) not work well in another culture ? 3. What role does music play in this spot ? Who is the target market ? 4. Is the music at all distracting from the message ? 5. How else are radio stations advertised on TV ? 1. Analyse the reasons for Arvind Pandey’s dilemma. 2. Does Arvind Pandey really face a dilemma ? 3. In your view what should Arvind Pandey do ? Should he disclose it to his German Vice President ? 1. Comment on the terms and conditions placed by the corporation. 2. What factors influenced the computer company’s decision to accept the contract ? 3. Was it a win – win agreement ? Discuss ? 1. Do you find Mr. Sinha’s responses to various questions effective ? Give reasons for your view on each answer given by Mr. Sinha. 2. Rewrite the responses that you consider most effective to the above questions in a job interview. 3. Mr. Sinha has observed the norm of respectful behaviour and polite conversation. ......

Words: 306 - Pages: 2