Financial Analysis Cost And Income Analysis - 934 Words

Financial analysis Cost and Income analysis The costs of the start stage are training costs, rental costs, interest costs, supplies costs (such as papers, powdered ink, stationery†¦ ), utilities cost (such as electronic cost, water cost, cleaning cost, property costs†¦), depreciation cost, wage cost, facilities cost. As mentioned in training mechanism part of this report, at the start stage of LFA, the whole enterprise has not formed a systematic training mechanism. A large number of trainers will be hired and LFA will corporate with third part training organisations. Therefore, the cost of intellectual investments at the start stage is much higher than the other stages. However, the cost is necessary and unsustainable, which was mentioned before. On the other hand, facilities such as printers, offices, chairs and desks are non-current assets of LFA. In other words, Facilities are bought to support business activities, not to be sold as inventories. According to AASB (Australian Accounting Standards Board) 116, they are non-current assets of LFA, which belong to the column of Property, Plant and Equipment. Relative depreciation expenses and maintenance costs will be allocated to overheads of relevant products and services. Therefore, the costs of facilities which only generate at the start stage of this enterprise cannot be regarded as periodical cost. In other words, it means that in 2016 Income Statement of LFA, these facilities costs cannot be totally counted as expenses.Show MoreRelatedThe Valve Of Equity Per Common Share1442 Words   |  6 Pagesdividend )/(net income) It is also important to note that our return on Assets (ROA) could be derived in a way of; profit margin Ãâ€" Assets turnover Ratio = (net income)/(average total assets) =(net income)/saleÃâ€"sales/(average total sales) Classification by Source The classification by source can be divided into three: Income statement or Statement of Comprehensive Income (SOCI) Statement of Financial Position (SOFIP) Mixed (i.e. combination of income statement and SOFIP) Income Statement or StatementRead MoreBtec Business, L3, Unit 7, D1 Essay1220 Words   |  5 Pagesbreak-even analysis in estimating budgeted activity levels for a selected organisation. Break – Even Analysis Break even analysis is reliable as it is made from the budget and it gives a financial structure to the business. 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