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Financial resource is very important every organisation it is just like a blood for the business without finance they can not run their business activities (Fortier and et.al, 2017). In this reports explaining all kinds of resources and also manage their fund in order to support their activities.
1.1 Explaining the principal of costing and business control system
These are the Important of costing and discuss in given below
cost is related to its cause – Silloth nursing and Residential care home has implemented these several best costing principal for health and care of patients. These are the principals, cost can be defined as the price to pay in order to bring a finished goods and services to the market. The aim of costing is to help providers manage services and improve working efficiency. Every cost which is obtain a cause (Hansson and et.al 2016). Therefore, there exist a cause relationship the value incurred for a cause must be added up in that item only for which is price is change .
Abnormal costs are charged in costing- it is basically the cost which occurs due to any uncertainty like fire, theft, negligence etc. therefore this types of cost must not be added in the direct costing of item and also this value has no direct relationship with the costing of goods or product items. Silloth nursing company also use this cost if any fire occurs at their go-down than the cost of due to fire will be included in the rest of the items that have manufactured and not with those portion or items who are not yet now manufactured.
Past cost are not taken into consideration to future cost – past costing are never added in the future manufacturing as it will take the price of the product and will not show the true cost of the product. Silloth nursing industry follow this point for advertising and promotions costing , which is considered as deferred revenue expense and it distributed in a specific time.
Stakeholder engagement- it is consist with the accuracy of costing depends on the information providing by range of stakeholder. Silloth nursing clinical staff is bale to giving more accurate information for costing, it is non finance department these department including only those cost which are related non finance department.
Consistency- it is refer with the entity consistent formulation in accordant to all department and unit for measuring the value. Similarly Silloth nursing identifying the need for all department and measuring the cost per unit.
Transparency- this principal showing the cost of health and social care like Silloth nursing care it is clear and easily audit, this company can use this method for controlling the cost.
Per patient cost this principal is useful for the payment of patients after the valuation of per patient, it will calculated by dividing all the variables and fixed cost change over a period of time by number of patients appointed in the Silloth nursing and Residential care home.
1.2 Identify information needed to manage financial resource
Financial resources are very useful for every organisation to run their business for long term without financial resources no any one manage their business as well as not managing these resources, so it is necessary to identifying the need of managing financial resources. Silloth nursing and Residential health care company, required their financial resource to make payment their employees, procurement of material, medicines, bed, equipments and others. These are the requirement giving their whole staff and patients also by make a plan how much revenue on these sources. This industry receive revenue in term of payment which is obtain from their patients. Silloth nursings will managing their financial resources in effective manner when the entity is clear with correct accounting method for measuring the cost of per patients and other items.
Financial resource is very important for identifying and assessing the information of business need in efficient management and taking risk for high return on future so it is very compulsory. It is also related to neglect of staff, death of patients some time failure of operation, this company managing their financial resources in proper way and also tale a possible risk. This organisation also take risk can be seen regarding to miss happening with their employees, death of patient. In addition to this, the budget and auditing reports are related with the procurement expenditure, financial price, administrative expenditure, marketing expenditure, reconstructing of building cost and legal value. All these expenditure are included in financial resources and this industry also managing these resource for full fill their business need and patients need. This care home also follow all the policies and system related with the allocation of resources.
1.3 Explain the regulatory requirements for managing financial resources
Any type of business must apply the basic regulatory requirement to sure the success of that industry. These organisation in function organisation work run in smoothly way within standards of the statutory provisions of that specified country. Silloth Nursing and Residential is the good example in united states which regulates all the financial transaction of health industry. This organisation follow all principles that govern information related with enforceability and arrangement of contract. Some contract add indemnity letters, pledges and agency and it also provide the provision of break of contract. All other regulations concern to the issue of quality management. Government are responsible for enforcing quality standards within the firms that giving the services to their general population.
1.4 Evaluate system for managing financial resource in a health or care organisation
There are the many method for managing financial resources in health and social care. Silloth Nursing can used in functional activities which is concern with best known system and very effective for this organisation management and its financial