I guess the easiest way to explain would be real like situtions. i.e.
To make sure each department is following through with the financial plan.
Financial manager "A" looks at the financial records to make sure that department 10,12, and 13 are following the plan. When compared to earlier reports it shows all departments but 10 are following the plan. Now Manager "A" must see why they are not following the plan and see how they can cut costs so they can stay within the plan. When the plan is followed this will allow for manager "A" to ensure that resources are being used correctly and allow more daily interaction. When this step is not understood properly many areas will be affected like the next step, operations, employment, equipment, and stakeholders.
Ok thank you i have a dead line of 5/22/12
Hello. My specialty is focusing on YOUR Financial needs. Financial Planner/Business Owner for 20 years. CPA,PFS,QFP,GMMA.
I have to teach an ethics class but will have you answers by 4pm.
Hi from just answer. I would like to help. On to scenarios:
alance Sheet -- This is a Financial Statement which lists a Firm's Assets and Liabilities and Shareholders Equity at any given point of time, which is usually end of the year.
The balance sheet for a subsidiary can be compared to other subsidiaries to insure that suitable returns on asset values (at historical cost) are attained. One can also look at comparative balanc sheets to see if assets are being allocated properly, or if there is excess capacity that should be transferred to other producing units or liquidated.
Statement of Revenue and Expense -- This is a Financial Statement, also known as Profit and Loss Account. This lists ALL expenses done in a year and also records ALL incomes (including Other Income) received in a year and helps to arrive at Net Profit for a given period of time.
Comparing subsidiaries on income is the most used bench mark for similar enterprises. Group A with similar business and assets outearning Group B implies better management, operation of and an eye on profitability, etc.Revenue Cycle -- This is a period of time when a Revenue on a sales done is received. It is defined as he process businesses use to describe the financial progression of their accounts receivables from the very beginning, when they first acquire product, if they're product based, until they get paid, if they get paid in full.
This is often measured in inventory turns (that is, how often does the inventory get turned to cash). A higher comparable implies Group A is managing the sale and collection process better. If Group A turns inventory 5 times in a year, and Group B 4, that would imply A will out-earn B. Now a manager should determine why.Payer Mix -- It is often defined as the mix of entities, other than patients that finance or reimburse the cost of health services. In most cases, this term refers to insurance carriers, other third-party payers, or health plan sponsors (employers or unions).
Assuming a diverse payer mix, credit issues, sales discounts, etc. can all be examined if one group outperforms another. If one group serves a select payer mix, its results will be more dependent on one customer, and credit indicators, like Accounts Receivable outstanding, can be monitored and actions taken as appropriate.Revenue -- This is total of proceeds / income that a firm receives during a given specified time from its operations.
Gross revenue is a simple income line item often used to compare subsidiaries. As a bonus base, volume indicator, etc., managers can easily refer to revenues without disclosing too much about a company's more private operations (manager bonuses, officer salaries, etc.). As some of the other indicia imply, comparing revenues can often be overblown when comparing operations, and should be used in concert with other comparable items to insure a usable 'apples to apples' comparison is made by management.
If this answers your question, thanks from Just Answer.
That will work for now. Thank you but I was looking for a real life sitution.
Yes I still do. Thank you.