Assignment 2: the principles and processes of financial planning

Unit 2: Financial Planning in Business

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Assignment 2: The principles and processes of financial planning


Task 1   Produce a report in which you address the following:

·         Explanation of the processes involved in establishing cost and profit input and output within business applications

·         Description of variables related to cost and profit margins and how these variables are monitored and controlled

·         Outlining of breakeven analysis processes related to business objectives and applications

·         Evaluation of breakeven analysis identifying and discussing strengths and weaknesses using examples

·         Explanation of the aims, objectives and processes of budgeting for business applications and context

·         Description of types of budgets and their relevance to specific business contexts

·         Discussion relating to budgetary responsibility within a business and what the responsibility entails


Task 2   Write about the following:

·         How cash flow forecast is constructed and relate the construction to aims and objectives

·         Discussion about the benefits of cash flow forecasts relating to business applications objectives and financial planning

·         Demonstration by construction of an example cash flow forecast for a hypothetical business, how it can be used effectively as a planning tool in business application