Financial Objectives
IncreaseRevenue increaseoutput reduceprice
decrease Costs increaseproductivity
Increase
profit reducecosts
ImproveCashFlow increasepay
ables reducereceivables
Capital expenditure spendingonlargebusinessassets
Return on Investment
Capital structure ratioofequityanddebtthatformbusinesscapital
Debt as a t of longterm funding gearing
PROFIT us CASH FLOW
differencebetweentotalrevenues and differencebetween cash inflows mainlyrevenue
totalcostsover a period and coshoutflows vests
the biggestdifference
is thetiming
Returnon investment t capitalthat getbackfrom aninvestment
of you
Gearing thepercentageof abusinesscapitalmadeupfromdebt
peoplewhoowethebusinessmoney
Receivables debtors
Payables creditors peoplewhoareowedmoney bythebusiness
Budget anagreedfinancial planforthefutureconcerning therevenues costsandtheprofitof
a business overa periodoftime usuallyoneyear
varianceanalysis differencebetween abudgetandanactualexpenditure
favourable whencostsarelowerthanexpected orrevenue is higherthan expected
couldbecausedby
strongermarketdemand to ahighersales
competitorweaknessleading
increaseinsellingprices
betterefficiency productivity
adverse whencostsare higher orrevenuelowerthanexpected
IncreaseRevenue increaseoutput reduceprice
decrease Costs increaseproductivity
Increase
profit reducecosts
ImproveCashFlow increasepay
ables reducereceivables
Capital expenditure spendingonlargebusinessassets
Return on Investment
Capital structure ratioofequityanddebtthatformbusinesscapital
Debt as a t of longterm funding gearing
PROFIT us CASH FLOW
differencebetweentotalrevenues and differencebetween cash inflows mainlyrevenue
totalcostsover a period and coshoutflows vests
the biggestdifference
is thetiming
Returnon investment t capitalthat getbackfrom aninvestment
of you
Gearing thepercentageof abusinesscapitalmadeupfromdebt
peoplewhoowethebusinessmoney
Receivables debtors
Payables creditors peoplewhoareowedmoney bythebusiness
Budget anagreedfinancial planforthefutureconcerning therevenues costsandtheprofitof
a business overa periodoftime usuallyoneyear
varianceanalysis differencebetween abudgetandanactualexpenditure
favourable whencostsarelowerthanexpected orrevenue is higherthan expected
couldbecausedby
strongermarketdemand to ahighersales
competitorweaknessleading
increaseinsellingprices
betterefficiency productivity
adverse whencostsare higher orrevenuelowerthanexpected
