Ab209-01-Unit9-Assignment-Edwardjulius Creative Writings Example
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Anticipation of revenue and expenses enables an organization to monitor their performance with a prescribed period of time (Carlberg, 2015). Proper recording and reporting is an important element that found in the field of accounting and finance, and without proper recording, the stance of taking valuable decisions is not possible. It has been observed that there are certain manipulations found in an organization during their physical operations, and most of the manipulation is related with their accounting department (Mentzer & Moon, 2005).
As per the estimation from Unit-6 Assignment, the total number of customers that will come to the company in the first month of their operations will be 30, with an average estimated price of $ 300. Total revenue in this particular provision will be $ 9,000. Total revenue of the company will be increasing with a flat rate of 10% each month. The increment has also applied over the total no. of customers, as well as on the level of expenses. It is also found from the projection of 12 months sale that no. of customers has a direct and strong relationship with the escalating revenue of the company. The same has been identified in the below mentioned graph
It can be clearly seen from the aforementioned graph that the revenue of the company has been increasing with a steady pace from 2nd month to the 12th month. The numbers of customers are also increasing accordingly in the same time period with a regular concession. It is also found from the computation that the revenue of the company has been increasing with strong amount that found in the congestion band from 28% to 44%. The average incremental rate of revenue in these 12 months of time period is 31.10%, which is very high and effective.
It is showing a magnificent capability of the company to manage their sales and expenses, and it will be very effective and powerful for them in the near future. It is also requested to the company to manage and maintain their effectiveness in the future as well, and should increase the level of their consumers. The company is been recommended to maintain their price as it will increase the level of consumers in the future towards the company that has a direct linkage with the financial position of the company.
Carlberg, C. (2015). More predictive analytics. [Place of publication not identified]: Que.
Mentzer, J., & Moon, M. (2005). Sales forecasting management. Thousand Oaks, Calif.: Sage Publications.
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