Strategic Accounting for Decision Making Essay

Masters
Essay
Miscellaneous
Pages 15 (3765 words)
Download 0
I have made a study into the financial affairs of both Central Pool and Taff View Pool on the basis of the financial information for the year ended 30th April 2006 provided by the Leisure Service accountant. He also made me available some additional information concerning the working of these units…

Introduction

We can review this report together once you have gone through the basics. We can take up from there for the implementation of any suitable plan of action for the overall financial improvement of the units concerned.
The important factor for consideration both in the case of Central Pool as well as Taff View is that there seems to be an immediate need for the sales to be enhanced since there is gross underutilisation of the operating assets. This is evidenced by the Ratios of Operating Profit to Operating assets and the Sales to Operating assets. As against the ratio of operating assets to operating profit of 21% in the case of Field Park it is 1.55% and 4.60% for Central Pool and Taff View respectively. These ratios are very low. Similarly the ratio of sales to operating assets is only 1.10% for Central Pool and 1.34% for Taff View, whereas the same ratio for Field Park is 2.80%. Comparatively the ratios for Central Pool and Taff View are poor.
Similarly the profitability of both Taff View and Central Pool is well below the comparative profitability of the Field Park. This is quite obviously exhibited by the operating profit to sales ratio of both facilities. The operating profit to sales ratios stand at 1.41% for Central Pool and 3.44% for Taff View. These are very low as compared to the ratio of 7.60% for Field Park signifying the profitability of both the facilities is not up to the mark. ...
Download paper
Not exactly what you need?

Related papers

Strategic Accounting for Decision Making Essay
We can review this report together once you have gone through the basics. We can take up from there for the implementation of any suitable plan of action for the overall financial improvement of the units concerned.…
Strategic Investment Decision Making
This paper addresses a critical question "Should TAM Airlines buy Airplanes of the Model: Fokker F-100 or the Airbus A-320" The research is carried out in the form of a case study where drawing information from different search engines such as Google and previous research we compared the two aircraft.…
Decision Making College Essay
There are different levels of decision making and types of problems, different types of problems include semi-structured problem, structured problem and unstructured problem. For every type of problem there is a different level of decision to be taken and there is a different solution of each type of problem. Normally structured problem as easily solved as compared to the semi structure and…
Strategic and Financial Decision Making
The cost of financing through equity is more than that of debt. The bond holders are paid fixed rate of interest every year, hence they bear no risk. The equity shareholders do not receive any fixed income every year; it is dependent on the profits of the company. Hence, there is a risk involved in holding equity shares as compared to debt capital. Therefore the equity shareholders require more…
Managerial decision making
A hallmark of today's business environment is its chaotic nature. This chaos is rooted in unprecedented rates of change and high levels of complexity. In turn, rapid change and effective decision-making create an environment of high risk in which decision makers possess little certainty about what the future holds. They perceive events through opaque lenses and base their decisions on large…
Management Decision Making Essay
It is through proper trade that goods produced at particular places are equitably distributed among users. With the help of trade goods are made available to consumers at the time of their need. It removes the hindrance of persons by bringing together producers and consumers who are widely scattered.…
Strategic Decision Making
There is no better appropriate timing and place other than this kind of TV appearance. Customers eagerly await such announcements when policy changes take place on the aftermath of old guard changing at the helm. The strategic significance of this decision lies in the fact that the new CEO has recognized the relevance and the importance of the TV as a medium of communication to target potential…