Accouting Project Case Study Help
As a shareholder, the cash flow will help in analyzing whether the company is working efficiently or not. The analysis will help in knowing that financing or investing activity generate cash or not, which describes the management’s decision-making skills. If the management fails to bring progress in the company, as a shareholder, it would be suggested to change the management because the shareholders are the real risk-takers.
As a supplier, the cash flow will them me in analyzing whether the company will be able to pay for the goods they purchased from us, or not. The cash flow tells the actual cash position that the company currently has. If the company fails to meet its daily expenses, how would it pay for the goods it purchases?
Section 2
The behavior of management is the key to success in every business. If management is serious in minimizing the cost of the company, then the employees won’t dare to show non-seriousness towards them.
If the management plans to control the cost of the company, then they would find different ways of controlling them. Management plays an important role in the progress of any company. Management is the one who is in coordination with everyone. They know how to deal with everyone: with employees, customers, stakeholders and shareholders. They have an edge in it. They know how to satisfy everyone working for the company. What would make them remain motivated towards the company? What sort of incentives will motivate the employees to work for the company’s interest? The management has the answer to all the questions.
The relevant decision making of management, at the right time; will help the company to gross and minimize its monthly or annual expenses. The role of management is important as the decision making for the company is part of their job. If they fail to have relevant decision making for the company; sooner or later, the company will be faced with solvency or bankruptcy issue.
The cost function will help the management in analyzing or predicting what sort of total cost they would face while producing a product at a different level of output. The management would run the model in different production scenarios, to pride output.....................................
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