Evaluate how managing resources and controlling budget costs can improve the performance of a business.

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D1:

Evaluate how managing resources and controlling budget costs can improve the performance of a business.

In this assignment I have to evaluate how the management of resources can and controlling budget costs can improve the performance of a business.

Tesco can have less information problems. Ratios are not definitive measures for a large organization like Tesco.  If Ratios are interpreted carefully problems can be solved. They can provide clues to the company’s performance or financial situation. But on their own, they cannot show whether performance is good or bad. If ratios have some quantitative information an informed analysis can be made which will help a lot. This can improve the performance of Tesco. It can motivate Tesco to move on and make success as they would know the exact state of Tesco as if they are making profit with their sales or they are facing loss.

The information should be updated in financial statement. The figures in a set of accounts should be up to date, they should tell exactly how a company is doing and so this would give a proper indication of the company’s current financial position. This would help Tesco in achieving success as they would know exactly how well the business is dong. They would manage their resources and control the costs according to the budget.

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If the accurate and all information are collected in the financial statements, business can do well. The business will have all information about its accounting ratios. Through the summarization all information can be calculated which will be of relevance to the users of accounts.  If the ratios are based on the summarized year end information and show a true reflection of the over year, it can be a great advantage to the business, which will help Tesco in doing well. This will be the accurate managing of resources which will help Tesco do very well.

If the business is managing ...

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