Answered: How to financially manage and supervise…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

See similar textbooks

Related questions

Question

How to financially manage and supervise the warehouse project to be built？

Expert Solution

Introduction

A warehouse is a physical location that is owned or rented by an organization to keep its goods and stock in the form of inventories that are going to be needed in the future.

Explanation

Financial factors to consider while building a warehouse project are:

Potential workforce: Potential workforce refers to the salary, remuneration, and ages given to the workers and employees that work for the maintenance and security of warehouse, their wages can be considered as a financial factor which can affect the organization's position as a whole.
The actual profitability: The actual profit, revenue that can be earned by selling or renting the warehouse i.e., the opportunity cost can be termed as a financial factor that might affect the organization's financial base. An organizational manager has to make a decision here whether to rent a place or make a buying decision.
Expenses: Expenses that are related indirectly or directly to the warehouse storage are included under this head, an organization has to incur several expenses that are beneficial to make an organization work successfully.
The warehouse: The warehouse itself means the size of the warehouse, if the place is rented then according to the size of it the rent would differ, if the place is owned by the organization it might be proved as a beneficial situation.
Maintanance: Maintainance charges to improve the physical state of the warehouse i.e., using updated machines, skilled Labour force, transportation facility, and accessibility of resources.
Other: Other financial factors that include the decision regarding funding i.e., to borrow funds from the sources present in the market or initialize the organization's savings or extra profit for establishing a warehouse project.

Step by step

Solved in 3 steps

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, management and related others by exploring similar questions and additional content below.

Similar questions