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  • July 28, 2017
  • David Marks
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Lenuta Baciu Finance

Introduction

Inese Jurika-Elezi Business EnvironmentFinance has a direct link with the operation of the business. It plays a very vital role in day to day operation of the business as well as expansion of the business. It has the calibre to pull the business to top level at any circumstances. The company has to maintain sufficient funds in hand in order to run the business in smooth way. It is not possible for the company to generate sufficient funds from it day to day operation. The company has to opt different sources to get funds. Different sources of funds are available to both private and government company to increase their funds. On the other hand proper utilization of funds is also very important as in proper distribution of funds leads to heavy loss for the business. For proper utilization of funds the management of the company needs to take appropriate decisions. Different costing methods and techniques helps the management to choose right costing methods that suits the requirement of the business and that will helps for the decision making. In this study we will discuss about the sources of fund available to business and utilization and effects to the of the funds. Thomas cook plc has been considered for the case study purpose. It is a company that deals with travel and tourism and its main business is to provide services to the customers.

Task 1

P1.1 explains the importance of costs and volume in financial management of travel and tourism businesses using International Airlines Group (IAG) or Thomas Cook as your case study.

Lenuta Baciu Finance

Introduction

Proper study of cost and its relation to volume are very important for the company to take decisions for their business. Cost and volume plays an important role in managing financial transaction of the business and it gives suitable method and techniques to find out different costs involve in the operation of the business. Different business adopts costing methods on the basis of their nature of work and requirement. As a service sector Thomas cook plc has adopted direct costing methods in order to find out cost and volume of the business.

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