Managing Financial Resources in the health and Social Care Essay

Managing Financial Resources in the health and Social Care - Essay Example They will also provide residential support, transition program, visual therapy, special needs education etc for young people and children. This organization also has to manage its financial resources to provide such kind of services consistently. There are few principles of costing which significantly exist in the financial management. Care Tech Holdings PLC has to follow and apply such principles in their costing activities. If they are unable to reduce the cost or to control the cost then they never will face the financially healthy situation within the organization. For this reason they cannot take better initiatives in their activities and cannot help more adults and children. These principles are generally helping any organization to plan their activities in a systematic way. Break even analysis is one of the important principles among the costing method (Brayley and McLean, 2008). By applying this method the organization can get information that at which level the company meet all its costs and expenditure and started to earn profit for further investment or expansion of business. This is generally indicating a point at which the company can recover all its fixed and variable expenses. Minimum cost analysis is another principle to control the business activities. It is generally based on the assumption and prediction before starting a business or before starting any new financial year or before taking any kind of new initiative by the organization. What will be the minimum fixed and variable cost that has to be analyzed and how much revenue can be generated from those particular business activities that also have to be analyzed. If the revenue will be higher than the anticipated cost then the initiative will be granted. This method is generally used as a guideline to operate activities in an efficient way. If the mentioned company will follow these principles then it will never face any kind losses and always can maintain