Paper subject ( Management financial resource ) Essay

Paper subject ( Management financial resource ) - Essay Example The mental health care, among adults, is provided on the basis of the community based hospital, independent supported living and adult residential care homes (CareTech, 2014). The young people residential services are directed towards children; this segment is associated with various facilities that are associated with facilitating the learning of children, as well as managing their behaviors. Fourthly, the company offers the foster care services; this segment ensures that children are assessed in their homes. This foster care segment is related to the provision of special services to children with disabilities. While offering these services, the management understands that a prudent financial management can help the company to perform effectively in its area of operation (CareTech, 2014). In this respect, this paper is focused on assessing the financial management of the health and social care organization; the paper will pay attention to the operations of CareTech PLC. Among the financial aspects that would be discussed include the principles of costing and business control systems. Considering that CareTech PLC is a firm that focused on offering health and social care services, it is critical for the firm to use the absorption costing method. The absorption costing method ensures that various costs are expensed to a given product or service. This method is effective as far as the external reporting is concerned (Fukui, Yoshiuchi and Ikezaki, 2014). The method ensures that both direct and indirect costs are effectively expensed to a given service or product. The absorption cost would be efficient in determining the costs that are required to be met by CareTech PLC in various segments in order to continue offering its services to diverse clients. Generally, the direct and indirect costs are assigned to different the end product or service that is provided to a customer. The absorption costing has remained a key principle of costing