HND 财政预算 report.docVIP

Content 1. Introduction 2 2. Tricol Plc Flexed budged 2 3. The calculation of the variances and the variance rate 2 4. Variance analysis and report 3 5. Recommendation 4 6. Analysis of two investment appraisal technique 5 Assumption 5 7. Calculation of net present value 5 8. Calculation of the payback period method 6 9. Recommendation for investment decision 6 10. Consideration of other factors that management should consider 7 11. Conclusion 7 1. Introduction This report for Tricol plc which is now considering the development of its own distribution arm involved the interrelated issue about the investment appraisal. It includes 4 parts, assumptions, application of payback period and NPV, evaluation and recommendation and other factors to be considered, which could has important significance for assessing the rationalization of investment. 2. Tricol Plc Flexed budged It shows the Appendix 1. 3. The calculation of the variances and the variance rate It shows the Appendix 2. 4. Variance analysis and report Considering the policy of Tricol plc, the criterion that need to analyse the variance is more than a rate of significance of 3%, as a result, it need to analyse all variances. Based on the information above, the variance of this company is adverse in June, there are some reasons which caused of this situation, including these below: Based on the upgraded the production machinery of Tricol plc, it improved the material usage which can saving large amount of material of about 800kg. At the same time, due to employees of the company who can not operate the new machines masterly to produce a product, then the time of produce a products will require more than the original hours for 12 minutes, the time changes from 3200 hours to 3520 hours. The changeable of the machine have made some adverse result for the company. According to switched suppliers of Tricol plc currently, it is using the higher-grade material now, moreover the material price must increase from origi