Managing Budgets and Financial Plans Essay Example | Topics and Well Written Essays - 1250 words

Managing Budgets and Financial Plans - Essay Example II. Objectives that are important to Kitchens2Go: Ultimately, it appears that the Manager is concerned with the profitability and long term prosperity of the firm, so all of the objectives that are important to the Manager should be important internally as well. III. Measuring the Objectives: The objectives can be measured by the use of Statement of Financial Performance, cash flow analyses, analysis of cost of goods sold, expense analysis, etc. All of these will show how much revenue is being generated as well as how much the firm is spending. Ultimately, the Statement of Financial Performance shows whether or not a profit is being generated, and exactly how much profit, or the lack thereof. IV. Integration of the Objectives: These objectives could be integrated into budget and reporting systems by performing a given analysis as it relates to a specific department, as well as an overall analysis of the entire operation. It appears that the Bank Manager would like copies of Kitchens2Go's financial statements every year in order to monitor expenses, revenue, and profit or loss, so that a clear picture of the health of the firm can be examined. The most useful calculations that the bank can be doing on these statements are calculations of the cost of the goods sold, value of inventory on hand, labor