• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Business resources D1

Extracts from this document...


D1, Evaluate how managing resources and controlling budgets can improve the performance of a business. If a business manages its physical and technological resources well this would the performance of the business it will give Sainsbury the full benefits of the resources. If Sainsbury manages and controls its budgets effectively then it can improve the performance and success of the business. If a business manages to maximise it income and minimise it cost then it would improve the business profits level which would improve the business performance. If a business manages it cost and budgets properly by purchasing the right stock level which it needs and knows it would sell with a specific period of time then this means that the business would benefit by making substantial sales revenue from those stock as a result. Another benefit is that the business would be saving money from the space needed to hold the stock in the stockroom. Another benefit would be that the business would be making good profits level from the sales. This would improve the performance and success of the business overall. ...read more.


Another advantage would be that the business would be able manage to assess and evaluate its finances. However, if a business doesn't manage to control it cost and budgets properly then the business would purchase huge amounts of stock and doesn't know whether or when it would sell the stock which it had bought. Then this means that the business has tied up its money in stock and that is would be a drawback for the business because the business wouldn't have money to spend in other areas of the business such as paying overheads and expenses so the business would have to borrow some money and pay interest in that money. Another disadvantage is that if the business doesn't the stock in the specific period the stock could become out of date or out o fashion. So the business has to sell those products cheaper then this would mean that they might make less profit on those products or even a loss in some cases. Another disadvantage is that the business would be wasting space in the stock room. Therefore this is would affect the performance of the business as it would reduce its sales revenue and profits. ...read more.


So as a result it would be hard to know the performance of the business as a whole. I can conclude after evaluating the advantages and disadvantages of managing physical and technological resources and cost and budget I can say that it is in the best interest of a business to manage it's physical and technological resources as it will improve the overall performance of the business. In addition to that the business will gain the complete advantage of the resources. Furthermore the business will reduce cost and the resources will last longer for the business. It is in the utmost advantage of a business to manage it cost and budget. For a business who manages it costs and budgets will receive huge benefits. The business will increase its income and reduce it expenses. So therefore this will improve the overall performance of the business. In addition to that the business shareholders would receive high dividends at the end of the trading year for the business. This will then encourage the shareholders to invest money in the business which would the business grow and improve the success of the business. ?? ?? ?? ?? Abdulaziz Omar Unit 2 - Investigating Business Resources ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Accounting & Financial Management section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Here's what a teacher thought of this essay

3 star(s)

The writer has not considered the wide variety of resources that are used by a business and evaluated their effective use to its performance. More specifically applying it to one business would help and although the writer starts to talk about Sainsbury's, they do not pursue it. They concentrate only on a few resources and their relation to minimising costs and do not consider the use of resources in maximising revenue.

Marked by teacher Dennis Salter 04/04/2013

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Accounting & Financial Management essays

  1. Marked by a teacher

    In this assignment I will talk about why costs and budgets need to be ...

    3 star(s)

    Budget �000's Actual �000's Budget �000's Actual �000's Sales Revenue 966 897 957 967 Purchases of Stock 606 630 611 615 Wages and Salaries 241 250 245 249 Other Costs 98 96 97 97 Total Costs 945 976 953 961 Profit/Loss 21 (79)

  2. Advantages and Disadvantages of the various sources of finance available to businesses.

    As with property in a mortgage. Maximize Financial Leverage. Normally you can use your refinance most of your assets, property, commercial equipment and vehicles, to arrange for a commercial loan and may free up cash flow for other pressing needs. Additional guarantees. Depending on the credit rating of your company, the lender might require additional guarantees.

  1. compare and contrast financial and management accounting

    Also he says that another benefit could be the time and the money saved that is currently spent to consolidate divergent financial information when more than one set reports is required to comply with different national laws or practice (Seidman, 2005).

  2. Evaluate the adequacy of accounting ratios as a means of monitoring business health in ...

    This debt then will only be able to be paid back only if make some sales. Why using financial ratios are good? * Simplifies financial statements: Ratio's make the financial data simpler for a business so that you have a clear understanding of it and don't understand it wrong.

  1. Reflective report - Introduction to Financial Accounting

    However, stock decreasing involves the sale of goods and goods bought by the business now being returned out to a supplier. When you handle one transaction the first step is going to prepare Journals, determine nature and double entry of each of the transactions.

  2. Describe sources of internal and external finance for a selected business.

    The shares are not offered publicly but business contacts, friends or family can buy them.

  1. Analyse the reasons why costs need to be controlled to budget.

    For instance, they won?t be able to pay for their staffs salaries and wages or pay their suppliers to gain raw materials.

  2. Describe the purpose of accounting for an organisation. The organisation I have chosen is ...

    Management of the business A manger is responsible for planning, mentoring and controlling the resources which they are responsible for. A manger who clearly understands the businesses accounts will be better at making informed decisions and plan for the future.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work