FINANCE

Finance

Finance

Describe management accounting techniques which support the facilities management process.

Any accounting activities geared to the preparation of information for managers to help them plan and control a company's operations. Management accounts generally provide more detailed information than financial accounts, for example, breaking down revenues and costs between different products, or factories or departments to provide comparative data and to help reveal profitable and unprofitable activities. Management accounts also tend to provide information about performance more frequently than financial accounts, with monthly or even weekly management accounts rather than annual accounts, to give managers prompt feedback and to enable them to act quickly to check inefficiencies.

Management Accounting techniques are;

Return on Investment

Discounted cash flow

Internal Rate of Return

Asset Values

Profit and Loss Accounts

Balance Sheets

Accrual Management

Budget Control and Reporting

1.2 Describe the financial systems and processes used for the effective management of facilities management budget within your company.

Business accounting practice concerned with the provision of information to management for control and policymaking purposes, as opposed to financial accounting, which is the process of producing the profit and loss account and the balance sheet. Financial accounts are produced for the whole enterprise. Large enterprises have cost centres which are established where output and related inputs can be measured. In cost accounting for these centres, costs are related to outputs for the purpose of pricing, departmental budgeting and the control of production methods, material and labour usage. Some costs vary with output (e.g. material or labour costs) while others (e.g. overheads) do not. Overheads may be allocated to outputs using the measures of standard costing or absorption costing,where unit overheads are costed at levels which will cover total overhead costs at budgeted output by means of percentage rates, e.g. percentages of direct labour cost (Atkinson, 2007).

2.1 & 2.2 Explain the principles of financial auditing and describe how these principles within own are deployed of responsibility.

Auditing is a form of oversight, or examination from some point external to the system or individual in question. Technically, auditing is a form of verification by an independent body, which compares actual transactions with standard practices.

There are two types of audit report, qualified and unqualified. An audit report is referred as unqualified when its accounts depict true and fair representation of the firm's financial status. On the other hand an audit report is referred as qualified when its accounts are not satisfactory. The auditing officials highlight the major issues in the given accounts. This may create tension among the lenders and shareholders.

Further, there are two types of auditors; internal and external. External auditors are said to be third party auditing officials who are given the published financial statements of the organization to comment on the true and fair value of the accounts. On the other hand, internal auditors may jointly work with the external auditors and along with that they may also analyze the operational side of the business.

Because it evaluates the relationship of what is against what ought to be, auditing is a normative ...