Work effectively in accounting and finance Chapter 3,4,5

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Estimation – using

a common sense approach to calculation by seeing if the answer produced seems ‘reasonable’

Percentage – ‘per

cent’ means ‘out of every hundred,’ so a percentage is the top number of a fraction

where the bottom number is 100

Discount – a

percentage of an account deducted from that amount

Decimal place

– the number of digits (numbers) to the right of the decimal point; £ and p are

quoted to two decimal place, e.g. £4.99

Rounding – in

the case of £ and p, reducing the number of digits to two decimal places by

rounding up or down to the nearest p.

Benchmark – in

costing this is a forecast figure for future performance (e.g. sales) against

which the actual figure is then compared.

Mean average

– the sum of a series of figures divided by the number of figures – this is

also known as a ‘weighted average’

Time series

– a series of data collected regularly over a period of time e.g. annual sales

figures.

Line graph – a

visual representation of a time series set out in a line

Bar chart –

a chart which sets out a series of bars, the height of which indicates the

extent of the value that varies.

Pie chart

– a circle divided into sectors to represent in the correct proportion the

parts of a whole – like a pie divided into ‘slices’

Chapter 3 Key terms

Effective communication is essential to the

efficient running of an organisation. Any message must be easily understood,

correct and communicated on time.

Communication in an organisation can be internal (with

colleagues) and external (with customers). It is important that all

external communications, whatever the format, give a professional image of

the organisation.

There are many different types of communication, all

used for very specific purposes, for example:

·

Verbal and

written communications

·

Paper-based and

electronic communications

The main verbal communications are telephone

and voicemail messages, and discussions in meetings.

The main written communications are letters,

memos, notes and reports (all paper-based) and emails and faxes (electronic

messages)

Chapter 4 Summary

Emails –

an increasingly popular form of electronic communication with a unique set of

procedures, different from letter writing.

Netiquette

– the rules for writing emails which must be strictly observed if an

organisation is to maintain a professional ‘corporate’ image

Memorandum –

a formal paper-based internal message (often called a ‘memo’) which can be used

for a wide variety of communications, ranging from simple instructions to

informal reports; the memorandum is rapidly being suspended by the email

Note – a simple

written message used within an organisation to pass on information or make a

request

Fax – the process in which

a paper document is scanned and sent electronically to the recipient

Business letter –

a formal paper document, drawn up in a specific ‘house style’ used for a wide

range of purposes and normally posted to the recipient.

Informal report – an

internal document which is normally used for routine purposes for sending

factual information requested by the recipient; it rarely involves any form of

opinion or recommendation.

Chapter 4 Key terms

An individual working independently should be able

to combine efficiency and effectiveness in planning the daily workload.

Employees working independently should develop the

skill of prioritising tasks and to be able to plain their activities

accordingly.

A ‘rule of thumb’ order of priority for tasks is:

1. Urgent

and important tasks

2. Urgent

and less important tasks

3. Important

and not urgent tasks

4. Tasks

that are neither urgent nor important

Employees should be familiar with different types of

planning aids. They should be able to write their own. ‘To do’ lists and

diaries. They should be able to understand planning aids such as project

planning schedules and action plans, but they will not have to draw them up.

Employees should understand the need to monitor the

progress of a work plan over time in order to meet deadlines, and have the

flexibility to be able to re-prioritise if unexpected events happen.

Employees should be able to communicate with

management if they need help; they should also be able to delegate tasks if the

need arises, maintaining confidentiality where appropriate.

Chapter 5 Summary

Effective – getting

the result that you want

Efficient –

a task done with the minimum wastage of effort and resources

Non-routine task – an

unexpected task which is not part of the everyday work of an employee

Urgent task –

a task which has a pressing deadline

Important task –

a task which an employee needs to complete and which significantly affects

other employees

‘To Do’ list –

a checklist of tasks, made by an individual, which can be ticked off when they

are completed.

Schedule –

a chart used for planning projects which organises tasks in terms of time and

priority.

Action plan –

a checklist for a series of activities, listing the main tasks, when they have

to be done and by whom.

Monitoring –

the process of examining the progress of the work plan and re-prioritising

tasks where appropriate.

Chapter 5 Key terms

WEAF - Chapter 3

WEAF - Chapter 4

WEAF - Chapter 4

WEAF - Chapter 5

WEAF - Chapter 5