SRCL Case Study - Finance

Business Revision Accounting and finance

Budgeting ­ is the process of setting targets. It can be seen as a way of turning a firm's
strategy into reality.
Reasons for setting budgets are:
o To ensure no one overspends what the company expected
o Provide a measure of manager success
o…

To calculate how many units are required to make a certain profit, use the equation:
Fixed costs plus Profit divided by contribution.




Investment appraisal

Payback period ­ Amount of time it takes for a project to recover or payback initial outlay.

Equation for payback period is (Amount invested divided by…