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 Cost centre: It is a type of responsibility centre in a business which plays a significant role to analyse costs of production. Manager of the cost centre is responsible for different types of cost incurred in an organisation to produce goods and services. In a budget cost and expenditures are included and prepared on the basis of past financial data in residential care firm (Simmons and de Jonge Oudraat, 2012). The manager is not responsible for revenue generated by firm as well as using assets to generate sales. From the responsibility centre budget data and actual data both are compared and analysed that whether firm is performing well in the industry or not. Both profit and cost centre are interrelated in business which are responsible for cost and profit, incurred and generated by management respectively. Examples of cost centre are such as research and development costs, accounting department, IT department etc. Advantages:  The cost centre helps the new care home to derive total cost of production and services process in proper manner.  With help of cost centre price is decided of products and services and helpful for profit centre.  Helps to improve management and control over the costs and expenditures. Disadvantages:  Lead to enhance paperwork as well as burden on the administration department.  By this the company is unable to allocate financial resources and overheads effectively.  Project management: It is a process of planning, organizing, controlling as well as closing the work to achieve particular goal and objective of the business. It is very important tool in order to prepare and analyse budget by which health care organisation can know financial position for upcoming year. It has majorly three elements which are given as below: Advantages:  It helps the new care home services to make effective plan for completion of project as well as particular objective. Avail the Best Human Resource Dissertation Topics Ideas from the Writers of Instant Assignment Help at Affordable Price.

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Managing Financial Resources  

Various principles of costing and regulatory requirements are helpful to manage financial resources in health and social care sector. Read t...

Managing Financial Resources  

Various principles of costing and regulatory requirements are helpful to manage financial resources in health and social care sector. Read t...

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