THE VALUE OF DATA IN FINANCIAL DECISION MAKING

Question 1

What are some financial tools

Answer 1

Budgets - setting and reviewing targets

Cash flow forecasts - arranging finance

Break even analysis - Assessing the impacts of changes in selling price or input costs

Profitability ratios - benchmarking against competitors

Question 2

What is the value of using financial data for decision making

Answer 2

Sets clear targets

Easy to review and adjust

Based on past data or research (should be quite accurate, if it’s the companies past data)