AssignmentsLP5.1 Written Assignment: Cost InformationDirections: In a minimum of 2 full pages answer...

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AssignmentsLP5.1 Written Assignment: Cost InformationDirections: In a minimum of 2 full pages answer the questions provided below.• Please answer the questions in a double-spaced word document.• Remember to cite references in APA format1. Describe the relationship between financial planning and strategic planning.2. Outline the four major categories of cost.3. Describe how cost information relates to the three key activities of management: planning, budgeting, and control.4. List and describe the 10 requirements for effective financial planning and policy making.

David · Accepted Answer

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1. Describe the relationship between financial planning and strategic planning.
Most of the companies are giving more importance to the function of planning. Planning helps for managing the problems faced by the organization in a productive way. According to the words of Peter (2014) financial planning and strategic planning is related, the mangers has to consider different aspects while developing financial planning and strategic plans. Now we can analyze the relationship between financial planning and strategic planning in detailed way.
Link – One
While framing strategic plan for our business we have to consider the fund that is required for managing the operations in productive way. The finance manager has to develop the plan based on the need of the organization (Chou et al 2017)
Link – Two
We know the fact that most of the companies are using strategic plan for increasing the profitability of the business. Some time if the plan not effective the company has to face some loss. Therefore based on the strategic plan projections the managers have to develop an effective budget for managing the activities. 
2. Outline the four major categories of cost
Fixed cost
The fixed cost called as cost that does not vary based on the changes in the products or services. The concept of fixed cost is entirely different from variable cost (Liu et al 2017). 
Variable cost
Variable cost called as the cost that change based on the changes in the product or services. Based on the changes in the output the cost will vary.

Assignments LP5.1 Written Assignment: Cost Information Directions: In a minimum of 2 full pages answer the questions provided below. • Please answer the questions in a double-spaced word document. •...

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