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Costs and Budgetary Control - Coggle Diagram

- - - - By points of sale. A comparative analysis of the sales of each point is carried out and the causes of the differences are determined. These may be of an organizational nature or related to the efficiency of the sales staff or simply due to the diversity of tastes and purchasing power of the different sub-markets.
        
        Market Plan
        For a sales team to be able to sell the maximum amount of the product it sells, it must know the product perfectly in technical terms, and it must also be aware of substitute products, those of the competition, and new developments in the sector. On the other hand, the company's decision makers must consider other more general aspects of the commercial life of the products.
        
        ESTIMATION OF EXPENDITURES
        The financial management is in charge of two different functions as a contribution to maximize the net present value of the investment of the owners of the company. On the one hand, it assumes responsibility for the finances. By itself, the word finance can be understood as providing the means to meet payments. In this sense, finance covers financial planning, i.e., the estimation of cash receipts and expenditures, the production of funds and the control and distribution of those funds.
        
        Recovery projection
        This is the most interesting part for entrepreneurs: projecting what they will recover by investing in a company. As far as projections are concerned, there are no limits: we can project thousands, millions or billions. But this section does not refer to projections in the sole sense of what you want, but also mixed with the sense of what you can achieve. Considering what has been invested in the company, the resources it has, the opportunities and the expected outlays, how much could the owner of a company earn. That is the question we want to answer here.
- - - - Today we can raise our levels and speak of a recession not only when activity decreases in absolute terms but also when activity grows less than the growth rate of our full employment economy. Defined in this way, a growth recession began in the United States in late 1978, while the real recession may not have begun until well into 1979.
        Although there are many types of forecasts, the focus was on the demand for production from the operations function. However, demand and sales are not always the same. When demand is not limited by capacity or other management policies, the demand forecast will be the same as the sales forecast. Otherwise, sales may be slightly lower than customer demand.
        
        Inventory decisions result in purchasing actions that tend to be of a short-term nature and relate to specific products. The forecasts that lead to these decisions should meet the same requirements as forecasts for short-term programming, should have a high level of accuracy, and should be specific to each individual product. In the case of inventory and scheduling decisions, because of the large number of items normally involved, it will also be necessary to make a large number of forecasts. Therefore, computerized forecasting systems are often used for these types of decisions.
        
        Qualitative methods are useful because, when data are lacking or when past data are not reliable to predict the future. In these cases, past data are processed using time series or causal models to make a forecast. To the concepts of short, medium and long term. "Long term" is a projection that advances two years or more into the future. It is a common horizon for the planning of facilities and processes.
        
        Cooperation and development aspect
        The so-called "labor market" can be, at any time and for a given specialty, scarce or abundant. When this one is scarce, especially of peonage, the man of the field emigrates to the industrial zones, even we have already seen how some countries resort to foreign labor. This, logically, creates some difficulties of adaptation that the department of personnel has to solve.
- - - - The accounting cycle: Accounting systems vary greatly from one company to another, depending on the
        nature of the business, operations it performs, size of the company, volume of data to be handled and the demands for information that management and other stakeholders place on the system. Accounting: System adopted to keep track of and reason for entries and exits in public or private companies. Having explained the two words of the subject in question we find that the more general definition of an accounting system or accounting cycle comprises all the activities necessary to provide management with the quantified information it requires to plan, control and report on the company's financial situation and operations.
        
        A stock company, like a corporation, is a form of business entity. Ownership of a stock company is divided among its shareholders, who share in the profits and losses in proportion to the number of shares they hold. A shareholder's liability is limited to the extent of his investment in shares; and in the absence of it, there is no personal liability of the shareholders for the obligations of the company. The company has its own personality and can sue or be sued on its own behalf.
        
        The importance of cooperatives lies in the fact that through the application of a true cooperative system with all its rules, norms, procedures and established principles, it will undoubtedly be a tool for economic, social and intellectual development. The effect of the cooperativist movement in countries such as: Great Britain, Sweden, Germany, etc. is highly remarkable.
        
        Small business: it is the one that handles scarce capital and few employees. It is characterized because there is no clear and defined demarcation of functions between the administrator or owner of the working capital and the workers; therefore there is a reduced division and specialization of labor. Its accounting is simple, because it handles little information in this field. Examples: a mechanical workshop with two employees, a fabric store with one employee, a miscellaneous store with two employees.
        
        Medium-sized company: in this type of company, a greater division and specialization of work can be observed; consequently, the number of employees is greater than in the previous one, the investment and the returns obtained are already considerable. Its accounting information is more extensive. Examples: an appliance distributor with 10 employees, a candy factory with 15 employees.
        
        Large company: it is the largest organization. It has specialized technical staff for each activity. In this type of company there is a great division and specialization of work, and the investment and profits obtained are greater. The accounting information that is handled in the development of the mercantile activities is also greater and is taken in systematized form, examples: coca-cola, sofasa, carvajal.