In: Finance
Recommend how projected financial statements and other measures of business performance could be used by a manufacturing company to evaluate its activities and processes. (minimum word count 700 words )
Take note of word count
The first important projected information is consumption of raw material. From the projected report, the manufacturing company comes to know about how much of raw material is going to be consumed in coming times. This information helps companies to place the orders of raw materials well in time and keep sufficient storage of raw material. This information helps companies to calculate EOQ that is Economic Order Quantitiy.
The second important projected information is fixed and variable costs. for a manufacturing company, cost is the most important factor. The projected information about costs help companies to better manage its working capital.
The Third important projected information is Sales. This information helps companies to project its profits.
The Fourth important projected information is projected capacity utilization. this information helps companies to better manage its labour and other resources.