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Our first experience of project has been success. Thanks o the support of many friends and colleagues with gratitude. We wish to acknowledge all of them. However we may make special mention of the followingFirst of all, we are thankful to our project guide (Name) under whose guidance we were able to complete our project. We were whole heartedly thankful to him for giving us his valuable time and attention and for providing us a systematic way for completing our project on time. We must make special mention of (Name) our project in charge for their cooperation and assistance in solving problems. We would thank to our HOD (Name) for providing us assistance during course of our project. We are also very thankful to respective Director (Name), TPO (Name) who gave us opportunity to present this project.

INTRODUCTION: My project is based on the concept of online shopping. In this project we involve finance, how shopping is done and how the money is transferred.

INTRODUCTION TO FINANCE :Finance is the art of managing money. It is how people allocate their assets over time under conditions of certainty and uncertainty. A key point in finance, which affects decisions, is the time value of money, which states that a unit of currency today is worth more than the same unit of currency tomorrow. Finance aims to price assets based on their risk level, and expected rate of return. 1. The most essential requirement of any organized business or activity. 2. The process of procuring and judicious use of resources with a view to maximize the value of a firm.

FINANCE INVOLVES : Cash flow Balance sheet Assets Liabilities Capital Budget

ASSETS :- Property with a cash value that is owned by a business or individual. LIABILITIES :- A claim against the assets or legal obligation of a person or organization arising
out of past or current transactions or actions.

Various types of liabilities

1. Any type of borrowing from person or banks for improving a business or person income that is payable during short and long time. 2. A duty or responsibility to others that entails settlement by future transfer or use of assets, provision of services or other transactions yielding an economic benefit, a specified or determinable date on occurence of a specified events on demand. 3. A duty or responsibility that obligates the entity to another living it little or low discretion to avoid settlement. 4. A transaction or events obligating the entity that has already occurred.

CAPITAL :- Finance capital is money used by entrepreneur and business to by what they need
to make their product and to provide their services to the sector of the economy upon which their operation is based that is retail, corporate, investment banking, etc

BUDGET:It is a plan of money from where it comes and go. 1) 2) 3) 4) It is a financial information. We can understand exactly the cost and plans. Monitor expenditure. It is prepared to avoid waste.

IMPORTANT FACTORS IN BUDGET:1) It should be based on proper plan. 2) The cost in the budget should be based on previous year statement. 3) The budget should be realistic.

EXPECTED CATEGORIES IN BUDGET:1) Capital cost e.g. scooter ,computer ,power 2) Running cost e.g. rent, electricity, hiring, telephone bills 3) Staff cost e.g. salary, staff benefits. 4) Project cost or operational cost e.g. raw material, machines.

EXPECTED INCOME:1.) 2.) 3.) 4.) Donors Donations Sales and services Membership fees

MEANING OF BUDGET:An important instrument of the financial management used as aid in planning, programming and controlling. A budget may be defined as a financial and quantitative statement, prepared and approved prior to define period of time.

ADVANTAGES OF BUDGET:1.) 2.) 3.) 4.) 5.) It is a tool for quantitative expression of the planning. Evaluation of financial performance in accordance with plans. Controlling cost. Optimizing the use of resources. Directing the total efforts into the most profitable channels.

PLANNING AND PREPARING A BUDGET:1.) Well in advance. 2.) An opportunity to plan expansion or improving services. Hence involve staff in all departments. 3.) Budget should be realistic or plan should be realistic.

TYPES OF BUDGET:1.) PROJECT BUDGET:It is probable expenditure and likely revenue for a specific project.

2.) DEPARTMENTAL BUDGET:It is a budget linked to a particular department.

3.) OPERATING REVENUE BUDGET:It is related to volume of work anticipated.

4.) OPERATING EXPENDITURE BUDGET:Recurring expenses for operation and maintainence of services. e.g. salaries and wages, supplies, support utilities , maintainence.

5.) CAPIAL BUDGET:Mean for growth .i.e. new facilities, replacement of obsolete.

6.) CASH BUDGET:Provision for anticipated cash expenditure for planning the cash flow. E.g. salaries, bills etc.

ACCOUNTING:Process of recording, classifying, summarizing data in a significant manner and interpreating the results is known as accounting. Data mainly in form of money, transactions and events which are impart at least of a financial character.

TYPES OF ACCOUNTING:1.) FINANCIAL ACCOUNTING:It is documentation of facts and daily transactions.

2.) COST ACCOUNTING:It is expenditure for a particular service.

3.) MANAGEMENT ACCOUNTING:Analysis and interpreatation of financial information for management purposes.

COSTING:Costing is to find out money spent on a service.

COST CENTRE:It is an alloyed group of activities like in a hospital. E.g. laboratory, immunization, laundary service.

COST OBJECT:Anything for which separate measurement of cost is desired.e.g. I.C.U equipment.

COST UNIT:It is a measurable detail of service rended. E.g. linun, laboratory, investigations.

CATEGORIES OF EXPENDITURE:1.) CAPITAL V/S RECCURING CAPITAL EXPENDITURE:Capital expenditures are expenditures creating future benefits.

RECCURING EXPENDITURERecurrent expenditures is the cost that a business incures to ensure efficient and smooth operation of business.

2.) FIXED V/S VARIABLE FIXED EXPENDITUREFixed expenditures are expenditures that remains unchanged despite changes in related level or volume of activity.e.g salary of permanent staff. VARIABLE EXPENDITUREIt is volume dependent, varies in proportion to changes in level of activity. E.g. medicines, consumables and power cost. 3.) DIRECT V/S INDIRECT EXPENDITURE DIRECT EXPENDITUREThe expenditure which is clearly linked to a service. INDIRECT EXPENDITUREIt cannot be clearly linked to a particular cost object. E.g. administrarion cost, security cost.

OBJECTIVES AND ADVANTAGES OF COSTING:1.) 2.) 3.) 4.) 5.) 6.) To get clear picture of financial situation. Identifying profitable and non profitable segments and taking action accordingly. To decide pricing and services and discount. To decide for outsourcing of services. Helps in identifying wastages. Helps in budgeting and planning.

EFFECTIVE COST ACCOUNTING:1.) 2.) 3.) 4.) 5.) Proper maintainence of records. Proper sementation of costs. Sound accounting practices regularity. Record and utilization of equipment and material. Record and analysis of manpower utilization.

DIFFICULTIES IN COST ACCOUNTING:1.) Many inputs have to be considered. E.g. labour, material, depreciation. 2.) Every transaction has to carry a price tag. 3.) Variation in quality of service.i.e. e.g. from product to product, consultant to consultant.

BREAK EVEN ANALYSIS:Volume of activity at which total income just equals total variable and fixed cost. Lower break even point is more desirable.

ADVANTAGES OF BREAK EVEN ANALYSIS: Purchase decisions or formulating price policy.

COST BENEFFITING ANALYSIS:An economic technique and formulized way of comparing the cost and benefits of undertaking an activity and project.