chapter 5 mrs vicky freight forwarding

FINANCIAL AND LEGAL REQUIREMENTS Learning Objective: The students explain the requirements of bookkeeping and process of quotation and invoicingThe students should be able to calculat

Welcome to CHAPTER 5

CHAPTER 5 FINANCIAL AND

LEGAL REQUIREMENTS

Learning Objective:

The students explain the requirements of bookkeeping and process of quotation

and invoicingThe students should be able to calculate marginal cost accounting in forwardingThe students idetify the objective and the approach of risk management in the

forwarding company

Contents

Accounting and Cost AccountingRisk Management

ACCOUNTING AND COST ACCOUNTING

Accounting is the measurement, disclosure or

provision of assurance of information that helps managers and other decision makers make resource allocation decisions

Types of accountingOutputs

Cost Centre Accounting summarises different costs ordered by cost centres in details

Tax: here are different

rules in different countries. Tax income statement gives information about your income tax liabilities for the tax authority

An invoice is what you get when you purchase some products or

services or what you have to give to the buyer when you sell some products or services

Tax number and V.A.T number of seller and of buyer

Variable costs are associated with productive

work, and naturally rise and fall with business activity

Main flows of Cost from Input to Output

aaa

RISK MANAGEMENT

Risk Management is the process

of measuring and then developing strategies to manage the risk

Risks can be eliminated or

minimized, if organisations install a risk management system

IDENTIFICATION OF RISKS

EVALUATION OF RISK

MINIMIZATION OF RISK

End of CHAPTER 5