Mastergp
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When the market and technical aspect of the project is analyzed in terms in terms of the financial status to determine whether it will be profitable or not, it is said to be conducting financial analysis. This is very important so that the firm can know whether it can go ahead in the project in order to avoid starting a project that will be abandoned for want of cash.
At this point, all the cost unit like production cost, marketing cost, investment cost and many other cost center are identified and properly assessed. Such information will lead to the production of financial statement of the project for better presentation and clarity on cost imperative foe business actualization.
And they are some component of financial analysis They include:
Investment cost;
This cover the cist associated with fixed cost and working capital cost. The fixed cost embodies coat of building factory, capital equipment cost etc while working capital is the physical cash needed for daily running of the business.
Production and marketing cost:
This involves cost incurred in running the factory, administrative cost, selling and distribution expense as well as other operating expenses.
At this point, all the cost unit like production cost, marketing cost, investment cost and many other cost center are identified and properly assessed. Such information will lead to the production of financial statement of the project for better presentation and clarity on cost imperative foe business actualization.
And they are some component of financial analysis They include:
Investment cost;
This cover the cist associated with fixed cost and working capital cost. The fixed cost embodies coat of building factory, capital equipment cost etc while working capital is the physical cash needed for daily running of the business.
Production and marketing cost:
This involves cost incurred in running the factory, administrative cost, selling and distribution expense as well as other operating expenses.
