The Planning Cycle (1 Viewer)

[Bimbo]

Can anyone explain to me what this is? I can't seem to find the information required, ands i haven't got a textbook handy. Any information would be appreciated!

 

[truly-in-bliss]

lol..that is a huge question....and hence a huge answer....lets start....

The planning cycle is the continuous series of financial activates that take place as a biz plans to move from one pt to another over time.

1. Addressing Present Financial Position
- colelcting financial data to make future plans

2. Determining Financial Elements of the Biz Plan
- The financial elements of the biz plan include an analysis of:
Revenue statement
Cash flow statement
Balance sheet
Cost-volume-profit analysis
Financial ratios.


3. Developing Budgets
- the biz develops 3 types of budgets: operating, project or financial budgets

~Operating budgets relate to the main activates of an org and may include:
`Sales production
`Expenses
`Raw materials, labour hours

~Project budgets relate to:
`K expenditure
`R&D

~Financial budgets relate to the financial data of an org and may include:
`Revenue statement
`Balance sheet
`Cash flow statement


4. Monitoring Cash Flow
This invovles examining cash flow budgets, profitability, opening balance (how much $ the biz had b4 operation) and closing balance (how much they have after operations ie: opening - expenditure )


5. Interpretating Financial Reports
Financial reports show what the org plans to achieve by the end of a period.


6. Maintaining Record Systems
Record systems are used to ensure that data are recorded and the info provided by record system is accurate, reliable, efficient and accessible.


7. Planning Financial Controls
financial controls are used to ensure that biz's oeprations are achieved in the most effient way...to achieve efficency..biz compare and contrast acutal performance with planned performance

- Variance reports show the difference between budgeted and actual performance.


8. Minimising Financial Risks and Losses
Financial risk is the risk of not being able to repay a debt as it falls due, in the ST or the LT. this may result to bankruptcy or insolvency.

biz usually uses hedging and derivatives (a contract to secure a price of a product in the fluctuating price movements in the future)


aniwayz if you don't get that..try to read the Syks and Codsi textbook, it is a lot simpler than the Chapman.

hope this helps..

truly in bliss

 

[truly-in-bliss]

btw the 8-steps make up the planning cycle..ie: the planning cycle invovles 8 steps....it is a v elaborate explanantion...maybe your skool doesnt require that much detail...

 

[Bimbo]

WOW! Thanks so much for that, that will really help me

 

[Gelapo]

umm...wat's 'pt' ? (from the 1st sentence..."move from one pt to another over time. ")

 

[truly-in-bliss]

point.....so used to abrreviations...

 

[Bimbo]

hey truly-in-bliss, is that info in the excel textbooks? i have the hsc one somewhere, just can't find it. I need to buy a better textbook than excel, cos it's crap! my teacher actually said i wouldn't need a textbook, but i think i need more info sources than just the notes i have.

 

[ezzy85]

that planning cycle is in the big and chunky hsc business studies in action. its not a bad book but has alot of unecessary crap.

 

[truly-in-bliss]

Originally posted by Bimbo
my teacher actually said i wouldn't need a textbook, but i think i need more info sources than just the notes i have.

so what do you guys have? eg: do you get issued a textbook? if you odnt...thatz scary...

this info is not from the excel..cuz i had a look thru excel and its nto dat great..so i didnt buy it..

try to get a copy of
1. Syks and Codsi (the authors, i cant remember the name), it has a blurred photograph on the front cover..very good. i recommand this one if you find B/S is overwhelming in terms of cotent, or if you find the Chapman is a little bit heavy

2. Business Studies in Action by Stephen Chapman...it is good...but it is too complicated in some parts....i use this book after i have read the Syks and Codsi one....

3. Business Studies HSC by Tim Dixon, it is also very clear, much like the Syks and Codsi one. However, it is a little bit too simple in some areas.

hope that helps

truly in bliss

 

[Bimbo]

Ok thanks...i do distance ed., i have textbooks for every subject but my bus. teacher said i didn't need one, just use the notes i get provided with. But they are WAY too long...i have 4 A4 foders full of the notes...it's too much to go through, and i find that it isn't always very clear in terms of explanations. I'll check out some of those textbooks, thanks