Managing Financial Resources and Decisions: Self-Evaluation - Essay Example

During the process of completing this project, I comprehended that the costing methods cannot be applied homogeneously to all businesses but, it depends on the nature and size of the business as well. In my scenario, I used First In, First Out (FIFO) method due to its relevance in the industry. And, a number of small companies in the bakery and confectionery industry prefer to avail of this method.

In addition to that, I found the significance of the cash budget for a small business as well. For example, if a small business owner does not maintain a cash budget, he or she would not be in a position to know how much cash is remaining and how much it is going to be expensed. Moreover, I also gained an access to the notion that it is the development of a cash budget that enables the owner to make economic decisions and at the same time control and manage its expenses by maintaining a balance between the cash inflows and outflows.