Understanding management accounting and financial management Assignment - 1

Understanding management accounting and financial management - Assignment Example Understanding management accounting and financial management The cash budget presents the activity of the company over the first 12 months of its operations and assesses how much cash it can generate while working in the due course of business. As it is apparent from the above computation that in the first month the company has negative cash flow as it is the policy of the company to sale goods on credit and majority of the creditor settles claims after the month of the sales. After the first few months, the cash flow of the company has changed from negative to positive and thus it continues to grow for the next months till December. In order to further increase it cash flows, the company should curtail its variable cost of production and should ensure that creditors are approached in order to award the company with discounts. Another method for ensuring that the company has healthy cash flow is that the company should ask the creditors for increasing the settlement period. By doing so, the company would have ample amount of cash available and thus it can invest it in the working capital. Good working capital is essential for better functionality of the business and the company can assess the working capital requirement by looking at its cash budget. For example, since the cash flow is negative in the first two months, the company needs to manage its working capital prudently in these two months so that they can finance the rest of the operations of the year easily. A budget is a financial and a quantitative statement prepared prior to a defined

Markting Essay Example | Topics and Well Written Essays - 1000 words

Markting - Essay Example Least useful or appropriate? Your response should be well thought out and insightful. There are many companies in the world which are using the Internet as a medium to expand their business. One of the well renowned companies that is using the Internet to expand its business is Kellogg Company, popularly known as Kellogg’s. The company has its own website to assist its customers and provide the customers with a healthy service. The main vision of the company is to provide its customers with more improved and advanced products. Moreover, the company plans to provide the new products with more nutrition and taste to meet the standard of good quality products. For instance, the company launched products like Frosted Mini-wheat Little Bites, as well as Kellogg’s Raisin Bran, in the month of February 2012. These products were launched in order to satisfy the needs of the customers because it was through customer feedback, which was given on their official website, facilitate d the company to bring the products in the market. Through various social networking websites like Facebook, Kellogg’s has also been able to gather information about the customers’ likes and dislikes. ... The company is able to comprehend customers’ preferences towards a particular product. The website helps in taking decisions related to future product expansion strategy for the company. The customer service and feedback system, which is created on the official website, helps the company to gain knowledge about the customer preferences within a very short span of time. Moreover, the company is able to save a substantial amount of costs by doing a thoroughgoing marketing survey in different regions which would enhance the requirement of cost allocation. All together, the company is able to gather information about the product preferences among the consumers from amongst the large population of the entire world through the use of website (Kellogg Co.). On the other hand, there are few drawbacks while seeking to gather valuable customer related information through website as has been done by Kellogg’s. In this process of gathering information, the company generally would b e receiving individual feedback and not a group feedback from its customers. This can create certain hindrances for the company regarding the kind of strategy to follow. The company might face difficulty while analyzing the feedback from each and every customer. Different customers will have different feedbacks to provide and the company has to shrewdly decide which strategy to follow and which strategy not to follow. In the long run, the company might face difficulties in devising a single profitable strategy. Moreover, this process might be time consuming for the company. Whereas, when the feedbacks come in a group, the company does not have to spend time in deciding what strategy to follow as one single strategy will give the company to earn a lot of profit. The strategy of gathering