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The smooth operation of an organisation depends upon proper managing of decision on business operation and allocation of resources and funds. The support of the decision on the business work helps in the proper availing of organisational success. In the following report the strategic decision made for the proper achievement of success is dealt with. Along with the rise in the better requirement of proper availing of resources, the success rate of organisation is depended upon the interpretation of the financial statements and the resources of the organisation which is considered to be Marks & Spencers. .


1.1 Identifying, calculating and interpreting key performance ratios from an organisation’s financial statements

1.1.1 Interpretation of efficiency, liquidity and financing ratios

The interpretation of the efficiency ratio helps i the better understanding of the efficiency of the organization in dealing with unforeseen situation. The liquidity ratio marks the situation of the organization in which the organization is capable enough to pay off the organisational debt.

1.1.2 Interpretation of Investment ratios

Interpretation of the investment ratios helps in the better understanding of the organisation, in this case Mark’s and spencer's investment in the outside market. The achievement of the proper interpretation of the investment ratio helps in the better understanding of the investment situation in the organization.

1.1.3 Recommendation of how performance can be improved

The performance in Marks and spencer’s can be improved with the ride in the better allocation of the cash in the organization. The support of the cash flow analysis in the organisation would also helps in the betterment of the performance of the organisation

1.3 Using financial statements for evaluating comparative performance

1.3.1 Using of financial statement and online data to compare between between competitors and industrial averages

The using of the financial statement in the context of online data regarding Marks and Spencer’s helps in the better achieving of the success in the interpretation of the organizational operation. The value of the organisation is better understood by the analysis of the financial statements.

1.3.2 Use of industry comparison information and subscriber intelligence services

The intelligence services in an organisation generally deals with the ideas and the innovation views of the organisation. The support of the organisation is better managed by the proper usage of the intelligence services of the organisation


2.1 Evaluating several methodologies as well as approaches to the costing methods of services, functions, products and activities

2.1.1 Treatment of direct and indirect cost in costing product and services

Direct costs are the cost incurred directly in the process of production and the indirect cost are the cost incurred in the operation in directly related to the production sector. Indirectly costs salaries and direct cost is wages.

2.1.2 Description of different cost treatment of job process and contracts

There are mainly three types of job cost contract for the contracts. The fixed price or the lump sum contracts, time and material contracts and the cost reimbursable contracts are namely the types of the job cost in relation to the job cost contracts

2.1.3 Features and consequences of absorption costing

Absorption costing mark the per unit cost of the organisation. The fixed cost of the organisation simply divided by the number of units manufactured.

2.2 Using methodology on marginal cost for supporting decision making procedures of short term

2.2.1 Difference between fixed and variable cost

The costs which are likely to change in the next moment or period is called variable cost and the cost which are likely to remain the same for the coming years is called the fixed cost

2.2.2 Cost-Volume-Profit analysis and short term decision analysis

The cost volume profit analysis is depended on the volume of product sold on a price in relation to the cost of the product. The short term decision analyses are based on the calculation related to the changes in the coming or nearby future.

2.2.3 Relevant cost and application to decision making

The cost and the relevance in the decision making are prime factor, as the decision made are based on the cost spend by the organisation. The support of the organisation is thus provided by the relevant ost and application.


3.2 Using methodology on cost management for supporting business excellence, lean enterprise as well as value chain analysis

On the proper understanding of the values of the lean enterprise the proper ,method that can be availed for the better understanding of the values and the ideas is the secondary form of data collection. The secondary form of data collection helps the further understanding of the operation of the lean enterprise and the values of the chain analysis. The use of the research articles by other writer would helps in the better understanding of the situation and the importance of the organisation.

3.2.1 Relationship between lean enterprise, business excellence and value chains

As inferred by Liu et al. (2016, p.358), the lean enterprise model helps in the understanding the smooth operation of the organisation it is related to the business excellence and value chains as it monitors the objective of the organisation and optimises the enterprise flow. It keeps in check the useless flow of information. The lean enterprise also helps in the focusing of the customer and thus leads to the rise in the reputation of the organisation in the society.

3.2.2 Contribution of financial analysis on cost benefit of quality, throughput accounting, analysis of waste, value analysis of activity chain

Analysis of the benefits gathered for the cost benefit quality analysis helps in the better management of the organisational success and the proper understanding of the situation of the organization operating in. It is evident that the rise in the operation of the organisation is well cleared out of the management. The management of the waste and the analysis of the value in the activity chain also marks the opportunity of the org