Study Flashcards
(24 cards)
What it variance analysis?
A variance is the difference between projected and actual figures.
This can be expressed as both a raw figure and or a percentage.
Purpose of variance analysis?
-identify where results differ from the plan
- understand the reasons why there are differences
- Be able to start action to remedy.
How is variance analysis calculated?
(Forecast-actual)/ actual x100
What is human resource management
Involves coordinating managing and allocating human capital or employees
Advantage and disadvantage of internal recruitment
Int: saves cost of not needing to advertise ads for jobs
Dis: encourages unfair promotions
Adv and dis of external recruitment
Adv: improves efficiency and reduces employee tension
Dis: can cost more than internal recruitment and time consuming process
Causes of poor recruitment
Neglecting reference checks
Ineffective job skills and requirement advertising
Short term effect of poor candidate selection
Poor quality service and products
Employee is able to do job
Customer complaints leading to refunds having to be paid.
Reduced revenue/profits due to reduced productivity.
Long term effects of poor candidate selection
Damage to the brand/reputation of the business as the new employee gives the business a bad name
Negative publicity due to poor-quality products/ services or health and
safety concerns
Reduced revenue/profits dog to reduced productivity.
Technology failures
Power outage
Website malfunction
Delayed emails
What is working capital?
A liquidity metric expressed as the difference between a companys current assets and its current liabilities.
Formula for assets and equity
Assets = equity + Liability
Equity = assets - liability’s
Csr
Conducting a business in an ethical way and in the interests of the wider community
Business ethics
Policies and practices regularising potentially controversial subjects such as bribery discrimination and labour
What is added value?
When a business increases the value of its resources by creating new output / product
Added value = selling price - cost of input
ped
Measures the responsiveness of quantity demanded to a change in the price of goods
Five main objectives of the government
Full employment
Price stability
economic growth
Redistribution of income
Balance of payments stability
Income statement
Profit or loss statement
Shows the companies performance in terms of revenue and expenses for the month and states whether a profit or loss has been made during the period
SOFP balance sheet
Details a businesses assets liabilities and owners equity at a point in time
Cash flow statements
Gives details of cash that has come into the business and what it has spent on during a specific period. This statement. identifys the cash that is flowing in and out of the company
Uses for income statement
Measuring the firms profitability
Helps business see if tho eh can generate profit by increasing revenue decreasing cost or both
Used for SOFP
Comparing current performance with past
Comparing information with other companies reports to decide investments
Uses for cash flow statements
To show the bank they have good cash on hand
