The Finance Department of Tesco

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The Finance Department of Tesco

Tesco started of as a soletrader, its finance functions were carried

out by Jack Cohen. A finance function is to raise enough finance to be

able to afford to carry out the business, also to cost and price the

product. Now as tesco is a larger PLC (public limited company) its

functions are carried out by departments were the finance director is

responsible for, Mr. Andrew Higginston. The finance department based

at tescos is now the central office.

Finance functions of tesco:

Tesco employs specialist's accounters for its finance functions. In

tesco's the finance department is split into two areas, which are:

· Management accounting department, this is were they plan their

finance for future periods; tesco also plans to set and allocate

budgets to their departments. Tesco plans to make predictions about

what should happen in the coming months. They look at their cash flow

forecasts, what they have incoming and what they have outgoing should

happen. Tesco also looks at how many goods they need to cover their

costs.

· Financial accounting department, this is when tesco needs to produce

documents based on what has actually happened in the business. Tesco

looks back on their cash flow statements, how much profit they've made

and what they've lost, balance sheet.

Annual Report:

Every limited company needs to produce an annual report once every

year. The annual reports contain information on items such as:

· Financial progress, this is to see whether tesco is able to carry

out the business and if they cost and price their products.

· Growth and expansion, tesco need to look at the gr...

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... ways such as:

Money off- this works when you buy a product then with that product

the next time you go in to buy something you will have money off your

next purchase. E.g. when you buy nutella u get a token with it so next

time you buy the product you will have 50p off.

Competitions- when you buy a product it may have an advertisement for

a competition you can take part in.

Buy one, get one free- when you buy a product you can get the same for

FREE! E.g. Tesco offers buy one get one free on shampoos.

3 4 2 - you can get three products and only pay for two. E.g. Tesco

gives their music cd's three for the price of two.

Free delivery- when you buy products and cannot take them home, tesco

will offer you FREE home delivery. E.g. when you spend over £50 tesco

will offer you free delivery.

And many more!

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