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Qualification - ATHE Level 4 Diploma in Business and Administrative Management
Unit Name - Finance for Administrative Managers
Unit Credits - 10
Unit Level - Level 4
Unit Number - Unit 4.33
Unit Code - J/505/9375
Assignment Title - Finance for Administrative Managers
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You are employed as a senior administrator in the Finance Section of Dresden Office Furniture Limited, a manufacturer of office furniture. You are asked to provide some information for other managers about costing, budgetary techniques and accounts within the business. Some of the managers do not understand this information and the associated processes having never had any training in this area. Produce an easy to use handbook for managers, which provides the following details. You should use examples where appropriate to illustrate the explanations and analysis you are providing:
The first section of the handbook must ensure managers understand the relationship between cost accounting and management accounting. You must include:
• a definition of cost accounting and management accounting together with an explanation of the purpose and scope of these techniques
• an analysis of the information provided by a cost accounting system that will be used to take business decisions. Use the example scenario 1 below as an example to illustrate the sort of information that managers can collect to support decision making.
• an illustration of how cost information supports decision making. Use example scenario 2 below as an example.
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The second section of the handbook must ensure managers understand how budgets and budgetary techniques are used to plan and control finance.
As some of the managers have not previously been responsible for budgets and have not been trained in how to use them you should:
• explain how budgets are used in businesses and the relationships between them, including how budgets are prepared and who is responsible for them
• explain how budgets and budgetary techniques are used to plan and control finance and the limitations of these techniques.
In the final section of the handbook you must ensure that managers understand the structure and purpose of company accounts.
Obtain a set of published accounts from a large UK company. You can do this by accessing the annual report and accounts on their website or calling/writing to the business to request a copy.
Using the annual report and accounts you have obtained as an example:
• describe the main financial statements produced by the company and explain their structure and purpose
• analyse the accounts using a range of ratios and supporting information in the annual report. The analysis must include a review of the company's financial and business performance during the year and compared with previous years. You should also identify any factors that may affect the business in the coming year.
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