2. FINANCIAL MGMT.
• A judicious use of capital & a careful selection
of sources of capital , in order to enable a
spending unit to move in the direction of
reaching its goals.
• Cost benefit analysis to achieve best quality.
• Ensures optimum fund utilization
4. BUDGETING
• Planning & controlling the activities of an
organization.
• Financial plans for the objectives during the period
covered by budget
• Predicted on the base of historical data otherwise
market or assumptions.
5. Budgeting methods-
1.Incremental-last year figures are used as the basis
for new budget.
2.Zero base-starts with a blank piece of paper-zero
base. Every expense has to be evaluated & decided
if it should be made, as well as what the cost should
be.
6. Budgeting process-
• Sales and marketing budget
• Production budget
• Administrative budget
• Investment budget
7. ACCOUNTING
• Defining the cost elements
• Cost element structure should be compatible with the
methods adopted by business
• How the organization will spend the money
• Amount for particular activities
8. CHARGING
• For internal costs
• Related to billing for activities in organization as –
internet connection
• billing customers for the delivered services in order
to recover revenue
• To recover all the costs incurred
10. Rates-(Setting of Rates)
• Determining market rates
• Analyzing demand for services
• Analyzing number of customers and the
competition
• Determining direct & indirect costs
11. REPORTING
Costs are addressed in the regular meetings with
the customer under the SLM . Hence , SLM is
provided with-
• IT services expenditure per customer.
• Charging & accounting methods used.
• Difference between estimated & actual charges.
• Charging disputes with causes & solutions.
