Accounting And Finance Clips

Clips explain and illustrate key topics in finance using a variety of case study examples. Key Topics: 1. Financial obj... (more)

Clips explain and illustrate key topics in finance using a variety of case study examples. Key Topics: 1. Financial objectives --2. Financial strategy --3. Return on capital employed --4. Financial targets. --5. Depreciation.--Kanopy. (less)

v. 1. Vital to commercial success is how well businesses control their costs. These come in two basic types: direct and ... (more)

v. 1. Vital to commercial success is how well businesses control their costs. These come in two basic types: direct and indirect. But in the real world classifying costs is rarely clear-cut. Manufacturer Blakeway Ltd divides its company up into cost and profit centres to help it monitor how different parts of its business are performing financially. But there's disagreement inside the company about how to act on the figures. --v. 2. Acme Whistles in Birmingham has been manufacturing products for 130 years. Much has changed at Acme in that time - but covering its costs, both fixed and variable, remains a priority. Making sales doesn't mean cash in hand. They have to wait to be paid and they need money to keep going in the meantime - working capital. There are hidden costs, too - such as depreciation. --v. 3. Successful businesses devote themselves to making profit - but what is profit and how do you calculate it? Why is working out the cost of sales so important and what's meant by matching? What's the difference between gross profit, operating profit and the "bottom line"? This clip clearly explains the calculations and why they're relevant to business. --v. 4. How does a business decide what to do with its profit? Harry and Bee Payne, owners of small computer company Logical Friends, plough their profits back into the business. But Blakeway Ltd, a much bigger operation, has to give part of its profits to its outside shareholders as a return on their investment. Is this in the long-term interests of the business? And what about profit quality? Was Logical Friends' decision to invest its money in houses a good idea?. (less)

v. 1. What are budgets? How do they work? In Blakeway Ltd budgeting is vital to their manufacturing plans - but budgets ... (more)

v. 1. What are budgets? How do they work? In Blakeway Ltd budgeting is vital to their manufacturing plans - but budgets depend on sales forecasts which are notoriously unreliable. Variance analysis is used to track the difference between estimates and reality. Budgets can be used to make staff more accountable and set priorities - but sometimes managers use up current budgets simply for fear of losing their money next year! --v. 2. A manager uses the budget to crack the whip. Against a background of falling sales, company accountant Bee Payne asks her colleagues to account for their spending against their budgets. The systems department hasn't actually overspent - but shouldn't they have spent less with sales falling? And why is the sales and marketing department overspending on its budget? Is there a scope for spending cuts to get the firm back on target? --v. 3. First Luggage makes its money by taking your luggage off your hands and transporting it to wherever you go on holiday or business. It's enjoyed impressive growth - and detailed budgeting, it's claimed, is central to its success. First Luggage's boss explains how they put their budgets together. But budgets are estimates - it's critical to monitor what happens in reality and "tweak" the business accordingly. --v. 4. SRA is a charity which helps people with mental health problems get work experience in its businesses. It uses a combination of budgeting and cash-flow forecasting to control its finances. Being realistic is vital in planning its budgets - allowing for things like inflation and the cost of materials. Business goes up and down, too - so monitoring how well they're actually doing against their forecasts is vital. (less)

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v. 1. What do a company's accounts tell you? Why are they important? This is a simple guide to the profit and loss accou... (more)

v. 1. What do a company's accounts tell you? Why are they important? This is a simple guide to the profit and loss account (income statement) and balance sheet. Together these documents form the basis for a company's annual report. The balance sheet provides a snapshot of a firm's financial health - but what do we mean by financial health? --v. 2. Working capital is getting tight at Blakeway and Maynard wants to know what's going wrong. One reason: too many customers taking too long to pay up. Should they slow down on paying their suppliers or push their debtors to pay up quicker? --v. 3. This clip explains the critical and tricky business of predicting future trends. Examples range from informal forecasting at a small business, to a marketing manager exploring future sales trends using time series analysis. --v. 4. What is breakeven analysis - and why do companies do it? Working out when a product or new store will break even is critical management information. But breakeven analysis isn't easy - and it has its limitations. (less)