a. Describe briefly the decision making issues that use statistics related to your chosen area of the Accounting profession. (5%)
A financial controller is the lead accounting executive in a company, who provides financial leadership and is responsible all the financial operations of a company. Financial controllers are in charge of executing internal controls, performing cost analyses, providing financial forecasts and budget reports. In this assignment, the financial controllers of accounting profession are to be chosen.
Statistics techniques can be used to help financial controllers to make decisions. For instance, they can use mean, median to observe the whole financial condition; use variance and standard deviation to manage and evaluate the risk of long term financial strategy and predict the strategic development plan, as well as cost control; use the distribution of financial ratios to manage the budgeting processes to monitor, evaluate, and control costs of goods, revenues and cash flows; use the coefficient of correlation and linear relationship to evaluate the relationship of different relative accounting subjects and financial ratios.
b. Select two variables from the data provided and discuss the reasons for your selection. (5%)
As it mentioned before, financial controllers in charge of performing cost analyses, providing financial forecasts and budget reports. Under this scenario, two variables, revenue and net profit margin, are selected to be analysed.
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