Welcome to CHAPTER 5

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 CHAPTER 5. FINANCIAL AND
LEGAL REQUIREMENTS
Learning Objective:
 The students explain the requirements of bookkeeping and process of quotation
and invoicing
 The students should be able to calculate marginal cost accounting in forwarding
 The students idetify the objective and the approach of risk management in the
forwarding company

Contents
 Accounting and Cost Accounting
 Risk Management

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and Development Institute
 ACCOUNTING AND COST ACCOUNTING

 Accounting

 Cost Accounting

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 ACCOUTING
 Accounting is the measurement, disclosure or
provision of assurance of information that helps
managers and other decision makers make resource
allocation decisions

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and Development Institute
 ACCOUTING
Types of
Outputs
accounting
Financial statements: Income statement (please link to income statement.ppt) -
economical result for the year
Financial accounting:
Balance sheet (please link to balance sheet.ppt) - situation (assets, equities
There are different rules in
and liabilities) of enterprise pre datum
different countries
Cash flow statement: (please link to Cash flow.ppt) makes transparency in
forms of cash per diem
Contribution margin accounting summaries net sales, variable and fixed costs
ordered by products. You can see how many profit (loss) you get from different
Controlling products.
Cost Centre Accounting summarises different costs ordered by cost centres in
details.
Tax: here are different Tax income statement gives information about your income tax liabilities for the
rules in different countries. tax authority.

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 ACCOUTING - Invoicing
 An invoice is what you get when you purchase some products or
services or what you have to give to the buyer when you sell some
products or services
 Information on an invoice:
 Complete name and address of seller and of buyer
 Date of invoice
 Date of delivery and of payment
 Consecutive number of the invoice
 Breakdown of invoice total
 Tax number and V.A.T. number of seller and of buyer
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 COST ACCOUTING

 The costs are categorised into fixed or variable

 Fixed costs are associated with the business
administration, and not change during quiet or
busy times
 Variable costs are associated with productive
work, and naturally rise and fall with business
activity
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Main flows of Cost from Input to Output

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aaa

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 RISK MANAGEMENT

 Risk Management is the process

of measuring and then developing
strategies to manage the risk

 Risks can be eliminated or

minimized, if organisations install
a risk management system
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and Development Institute
© Copyright 2021, Vietnam Logistics Research
and Development Institute
IDENTIFICATION OF RISKS

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EVALUATION OF RISK

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MINIMIZATION OF RISK

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and Development Institute
End of CHAPTER 5

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and Development Institute