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It is a report which provides a comparison between the actual costs of a business operation all throughout a fiscal year used by companies to ensure success. Such report contemplates the fact whether the business performance is within acceptable parameters (Stefanova, 2007)…
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Download file to see previous pages... ontingency to accommodate the risk of incurring unidentifiable but normally occurring costs within the defined scope” (“What is Cost Baseline,” n.d.).
This is referred to as a “financial plan prepared for every major expense category, such as administrative cost, financing cost, production cost” ( “Cost Budget”; “Budget,” n.d.). It essentially contains the list of all planned and expected revenues and expenses which is defined by Sullivan & Sheffrin (2004) as the “plan for saving and spending.”
This is considered as one of the vital plans to be taken up before starting to operate a business because this report helps in the proper allocation of resources, “evaluates performance and formulates plans” (Ward, n.d.).
Cash flow report is also called as the statement of cash flows or funds flow statement (Helfert, 2001). Previous accountants termed this as the flow of funds statement (Bodie, Kane & Marcus, 2004). This report mainly tackles on the change of cash all throughout a business year. The change of cash involves three major categories; operating cash flow, investing cash flow, and financing cash flow (Comiskey & Mulford, 2000). It is further defined by Erich Helfert (2001) as the “financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, and breaks the analysis down to operating, investing, and financing activities.” This report has been employed by companies because “it eliminates allocations which might be derived from different accounting methods, such as various timeframes for depreciating fixed assets” (Epstein & Jermakowicz, 2008).
This report is usually used by companies to determine “the costs of multiple resources for all periods during which the resources are available between a specified start and end time” (“Resource Costs Summary Analysis,” n.d.). It is quite helpful to minimize certain unnecessary expenditures and to find out practical and long-term ...Download file to see next pagesRead More
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