Financial Resources Management Assignment - Essay Example

ACW 2 Financial Resources Management Assignment ACW 2 Financial Resources Management Assignment Objectives The primary goal of the plan is to develop new students’ common room in Manchester Metropolitan University for students in the DIC department. The common room is to provide social work area for the students when they are not in class. This plan intends to redevelop the already existing vacant room in the university. This will make a better common room where student of Manchester University can spend their time and relax.

Assumptions There is an already decorated room that will save the department on the cost of building and decorating. The university has the required resources to fund the project comfortably. Plans Investing in this project will cost the university in the short term, but the benefits will come in the long term use of the room. This can be seen when the students begin to make full use of the facility is when we will see its benefits. As usual, costs will have to come before the benefits of the project are visible for all to see.

Like any other venture, the project will need sufficient financing that will enable it to develop smooth manner. This projected is to be carried out in the most convenient and economical way. The primary intention of this plan is to get the best costs of products in the market for the development of this project. Considering the prices of all the requirements of the project carefully, we can get the best alternatives of the materials required in the project. That is we intend to use the most valuable and affordable alternative to the items required.

This will provide the same quality services that the expensive items would otherwise provide. Instead of using glass tables that can easily break we would use classic wooden or plastic tables. These will provide long term quality services and products; that would have otherwise been provided by the glass tables in the short term (Ross, 2008). Like any other projects, there will be many costs accruing some will be direct costs others will be indirect, but all the costs will have to be met. The explicit cost such as the salary of the work force and the utility bills will have to be given the first priority.

This is to ensure that the work runs smoothly and that everybody is happy. The benefits of paying the workforce correctly and in time is to increase their motivation, which will in turn, improve their commitment to the project. Indirect costs such the preparations of the legal documents and auditing of the plans are also to be taken into account. The problem with these costs is that they will not be reflected in the balance sheet. This is because their impacts are not only felt by the DIC department alone but the entire Manchester University.

Overheads of this nature are normally hard to determine but with the right knowledge and experience approximates can be made (Vataliya, 2008). With the university, not incurring any fixed costs like rent and royalty the variable costs are the main concern. It is advisable that the capital for funding the variable cost should be set aside for the smooth running of the project. Variable costs such as the cost of materials and cost of transport should be budgeted for properly. This is because the prices of these essentials keep fluctuating from time to time.

The plan is to buy the material needed in bulk at the right time when the market prices are favorable. Buying the input material is directly from the manufactures is advantageous in cutting out the cost that would increase because of the middle men. Buying in bulk will also enable us get discounts of trade thus reducing the cost to be incurred (Hopper, 2007). In the budgeting of this venture, short run costs help in minimizing costs while maximizing the output in terms of the work to be done in developing the common room.

This will help the department to know the most accurate amount of capital to invest in this project. With these approximations, the university will be able to add the project in their budget so that the funds are available in time. Long run cost will also be considered to help in decision making of which firms to employ and where to purchase the materials needed. This is decisive in determining the firm with a good reputation for doing the best jobs at fair prices. It also helps one to choose the best manufacturers in the market who sell at friendly prices (Brigham, et al 2010).

With these plans, the dream of having a common room where all students in the DIC department will be able to hang out when not in class can be achieved. With the correct management and a cost effective plan like this, the university will accomplish a significant project. To see the benefits of the projects may take time but in the end it will be worthwhile. References Brigham, E. F., Garpenski, L. C., & Daves, P. R. (2010). Intermediate financial management (10. ed.). Mason, OH: South-Western.

Hopper, T., & Scapens, R. W. (2007). Issues in management accounting (3rd ed.). Harlow: Financial Times Prentice Hall. Jaffe, J. F., Jordan, B. D., Ross, S. A., & Westerfield, R. W. (2008). Modern financial management (8. ed., internat. student ed.). Boston, Mass. [u.a.: McGraw-Hill/Irwin. Kieso, D. E. (2010). Intermediate accounting (9th Canadian ed.). Mississauga, Ont.: J. Wiley & Sons Canada. Lodewyckx, E. (2007). Intermediate financial accounting. Vanderbijlpark: Publitech. Nikolai, L. A.

, Bazley, J. D., & Jones, J. P. (2010). Intermediate accounting (11th ed.). Australia: South-Western/Cengage Learning. Ross, S. A. (2008). Modern financial management (8th ed.). Boston: McGraw-Hill/Irwin. Spiceland, J. D. (2009). Intermediate accounting (5th ed.). Boston: McGraw-Hill/Irwin. Stice, E. K., & Stice, J. D. (2012). Intermediate financial accounting (18th ed.). Australia: South-Western/Cengage Learning. Vataliya, K. S. (2008). Modern methods of business management accounting. Jaipur: Paradise Publishers.