A Study On F Company Managerial P&L Forecast Problem

It is the corporation's internal information that supports managers to make the right decision in order to guide business orientation and enhance competitive strength.Business Management Dept.is aimed to play the managerial accounting's forecast role.It works based on internal financial information,manufacture information and marketing information,and the output is to forecast future profit,which is called forecast P&L.The forecast P&L is reliable for managers to develop investment plan,operating decision and internal controlling.But,reviewing the actual performance of managerial P&L forecast accuracy rate,there are huge variance between actual profit and forecast profit,and sometimes they are even totally opposite.The bad performance has counteractive influence on manager's judgement.The paper's purpose is solving above problem and to upgrade forecast P&L accuracy rate.Consistent with F company's forecast process,the author uses Factor analysis method as theoretical guidance in the thesis.P&L in F company is consisted with revenue,cost,expense and other items.So does the analysis in the paper.Qualitative,quantitative and graph analysis methods are applied to dig out the root cause and solve the problem.Also,a quasi-experimental is conducted with 3 consecutive months to check the improving performance,ensuring the improvement plan does effective.There are 4 parts in the improvement plan.1st,build a new KPI appraisal methodology for marketing department,upgrading revenue forecast's low accuracy rate fundamentally.2nd,optimize F company cost management process,lower the actual cost volatility,increasing cost forecast's accuracy rate.3rd,improve financial and accounting managerial performance,intensifying internal audit about accounting source data to make sure expense be more accurate.4th,ameliorate inventory management status,especially idle inventory.