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Ken Garrett.
Ken Garrett.-
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Noah098
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Sir when doing financial performance analysis for BOD/CEO, can I ASSUME certain things?
Like say income from cafe business has increased(with case study providing no reasoning , as to why) then can I say that:
“this could be because cafe has improvised the menu or enhanced customer experience by better staff training”
Or I am not allowed to assume things, which are not directly given in the case study?
Sir this is a very important doubt….
Noah098
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In BCO S/D 2020 suggested answer, despite senior finance manager being an internal party to the company uses words such as “the rise in animal support costs MAY BE due to inflationary pressure” , “cost form commercial operations has fallen MAY BE due to fewer properties to manage (we sold a property in 20X1) or it could be because we have managed our shop and cafe more efficiently”
So can we do this too? Stating possible reasons, even if not directly mentioned in the case study?
Sir can I please request you to not lock this question, please? I feel its very important for my understanding
Ken Garrett
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I would not postulate causes or make assumptions without some evidence from the question (unless you seem to be required to do that). It would be be better to say that it is not clear why income has increased, but be sure there are no clues in the question.
Ken Garrett
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S/D 2020 If the CFO does not know the cause of cost changes then the CFO is a fool and using the word ‘may’ simply draws attention to that. Better to say that the causes still need to be determined.
Noah098
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