Accounting principles and procedures Flashcards
In terms of business planning, what tools does your company use to ensure you are making a profit?
Timesheets.
Using resource planners (to ensure full utilisation).
Fee/cost reconciliation tools.
Project reviews.
Yearly performance reviews.
Team meetings.
Director one-to-ones.
What is benchmarking (on a construction project)?
A process by which the estimated performance (often cost) of a project is compared to other similar
projects. This can highlight areas of design that are not offering good value for money; or, if the price
offered by the contractor is in line with the wider market.
What is a PESTLE analysis?
PESTLE is an acronym for political, economic,
social, technological, legal and environmental.
It is a way of understanding and reviewing
how external forces may impact the business.
What is a SWOT analysis?
SWOT analysis is a strategic planning method used to evaluate strengths, weaknesses, opportunities and threats involved in a project or business venture.
SWOT analysis can be used as a basis for business strategy.
What are the issues relating to staff turnover?
It can be expensive and time consuming to hire staff.
Training new people is time consuming and expensive.
Turnover can also affect team dynamics, productivity and continuity.
What are SMART targets/objectives as part of a business plan?
Objectives which are:
Specific.
Measurable.
Achievable.
Realistic.
Time related.
What is an investment appraisal?
An investment appraise is used to assess whether a business or project would be a worthwhile
investment in terms of return (both financially and/or added value). Considerations:
Rate of return.
Payback period.
Net present value (NPV).
Give examples of fee earning and non-fee earning staff?
Fee earning - QS, PM, architect.
Non fee earning - Administration staff, IT technicians.
What is the purpose of an organisation chart?
A graphical representation of the roles, responsibilities and relationship between individuals within the organisation.
It can be used to depict the structure of an organisation as a whole or broken down by smaller business units.
How do you contribute to your company’s goals?
Sharing knowledge within my team(s).
Keeping up to date with new technologies and systems.
Delivering and exceeding my responsibilities.
Understanding my personal/project objectives, exceeding expectations where possible.
Brining in new business.
Focus on safety.
What is the objective of Porter’s 5 Forces model?
Porter’s 5 Forces is a model that identifies competitive forces that shape every industry and
determine an industry’s strengths and weaknesses.
Frequently used to identify an industry’s structure to determine business strategy.
The five forces are:
-Supplier power
-Buyer power
-Threat of substitutes
-Threat of new entrants
-Competitive rivalry
What is a joint venture?
-A joint venture (JV) is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task. This task can be a new project or any other business activity.
-Each of the participants in a JV is responsible for profits, losses and costs associated with it. However, the venture is its own entity, separate from the participants’ other business interests.
Can you explain what working capital is please?
Working capital represents the amount available to a company for day-to-day use and describes the ability of a company to meet its current liabilities. It is calculated by the difference between current assets and current liabilities.
What is meant by business strategy?
A business strategy is an outline of the actions and decisions a company plans to take to reach its business goals and objectives.
The strategy defines what the business needs to do to reach its goals, which can help guide the decision-making process for hiring and resource allocation.
What is meant by strategic planning?
The managerial process of developing and maintaining a strategic fit between the organisation objectives, resources and changing market opportunities.
