This article throws light upon the four most commonly calculated ratios. The ratios are: 1. Liquidity Ratios 2. Asset-Management Ratios 3. Debt Ratios 4. Profitability Ratios. Type # 1. Liquidity Ratios: Several liquidity ratios are used to learn how liquid (easily converted into cash) an organisation's assets are. These ratios measure the ability of the organisation to raise enough cash [...]
Break-Even Analysis: Another form of financial analysis is breakeven analysis. It is a technique for finding a point at which a project will cover its costs, or break even. It is often used to make an initial decision on whether to proceed with a project. Breakeven analysis is also a technique of financial control in the sense that further analyses [...]
This article throws light upon the eight major characteristics of effective control system. The characteristics are: 1. Integration with Planning 2. Flexibility 3. Acceptance by Members of the Organisation 4. Focus on Critical Activities 5. Timeliness 6. Economic Feasibility 7. Accuracy 8. Ease of Understanding. Characteristic # 1. Integration with Planning: First, to be effective, control systems should be integrated [...]