Financial evaluation and decision making, Financial Management

Financial Evaluation and Decision Making:

The final major element of financial management is the evaluation of the information provided through the accounting and budget process.

Financial evaluation assesses the overall performance of the business, and the performance of the business in certain areas.

The main area on which evaluation focuses is with financial ratios.

Similarly, financial evaluation may include benchmarking, where an established set of financial figures gained through the assessment of a number of similar organisations is used as a comparison with the particular organisation in question.  Where discrepancies exist between a benchmark figure, and that achieved by the organisation, the organisation can make decisions based on improving the businesses performance in that particular area. Again, without the benefit of accurate accounting and budgeting, the value of benchmarking exercises would be limited.

Posted Date: 10/1/2012 3:59:11 AM | Location : United States







Related Discussions:- Financial evaluation and decision making, Assignment Help, Ask Question on Financial evaluation and decision making, Get Answer, Expert's Help, Financial evaluation and decision making Discussions

Write discussion on Financial evaluation and decision making
Your posts are moderated
Related Questions
What is meant by the terms that an option is in-, at-, or out-of-the-money? Answer:  A call or put option with S t > E (E > S t ) is considered to as trading in-the-money.  If

that the business has far fewer linens than it needs, so he makes a major linen purchase on open account. Which of the following terms refers to the fact that partners Ma and Runni

For the purpose of the assignment, ASSUME that you are the most senior financial officer in the firm, and has responsibility for treasury. In its financial advisory capacity, you h

Q. Limitations of Traditional Approach in financial management? Limitations of Traditional Approach: - The traditional approach continued till mid 1950's. It has at the prese

Do you believe an increased common stock cash dividend can send a signal to the common stockholders?  If so, what signal might it send? An enhance in cash dividends is often se

Q. Introduction of just-in-time inventory management? It has already been observe that a reduction in inventory due to the introduction of just-in-time inventory management ca

Q. Describe Financial Management. Discuss the scope and nature of financial management. What role could the financial manager play in a modern organization? Describe the scope o

When a company commits (implicitly or explicitly) to granting at-the-money options to employees in the future then we can view them as a forward start options. a) Explain the di

I need a report on the topic Cash Management Control. Can you please assist me for Cash Management Control report for about 2500 words?

Determine the name of some profit margin ratios Other profit margin ratios can also be computed: Gross profit/ turnover Profit after tax/ turnover Advertising co