I need an explanation for this Management question to help me study.
As one of the four functions of management (see Henri Fayol), the control function involves projecting the costs of a business through budgeting and preparation of financial statements. Eventually the financial statements must be analyzed to reveal what is going on in a business.
Topic: Determining Costs
- Select your top five expenses. How have you determined your expenses? Be specific, and back up your assumptions with research. For example, if you will be renting, what are the going rates for rentals?
-How much will electricity and other utilities cost?
-What salaries will you pay and what perks will you give employees?
-What is your salary or intended draw from the company?
You will craft the heart of your financial projections by focusing on the financial area of LivePlan. Along with this, you will discuss the logic you used to estimate your sales, and your expenses.
Complete the expenses, net profit, and financing sections of LivePlan.
Access LivePlan by PaloAlto software®
Checklist: Go to the PLAN View/Edit tab and under Financial Plan and address the following:
- Complete expenses by month.
- Complete net profit by month.
- Complete the uses and sources of funds in LivePlan.