On The Five Common Methods Of Financial Decision Making In Enterprises

　　 Policy decision The concrete process is mainly carried out in the following aspects: first, according to the relevant information of the enterprise's financial forecast, the problems are found and submitted to the higher authorities; secondly, the advantages and disadvantages of the alternatives are compared; thirdly, the selection criteria are selected according to the actual situation of the enterprises and the characteristics of the projects; finally, the best plan is determined according to the criteria for selecting the award. In the actual work process, there are many ways to make scientific decisions. In the light of the author's experience in the process of practice, the following methods are listed.

　　 One is: linear programming method.

According to the basic principles of operational research, linear programming Mainly refers to a series of linear relationship between the index and the extreme value of the parameter comparison and analysis of a solution method, it can help us quickly find the best solution. Under the constraints of the existing conditions, the linear programming method can effectively help the managers of enterprises to further optimize the allocation of human resources, material resources and financial resources in combination with the actual situation of enterprises, which is also very important. financial management Decision making method.

　　 The two is: the preferred contrast method.

The most basic way to make financial decisions is to choose the best method of comparison. It mainly refers to the way that each alternative is arranged in one way, according to the level of their economic benefits, to compare them one by one, and finally to make scientific decisions. In this process, the standard of comparison is also dynamic. For different projects, different schemes have different standards. For example, there are total comparison, differential comparison and index comparison. In addition, we should compare the total annual revenue, total cost and total profit of different schemes. The difference comparison method refers to a further comparison between the differences between the income gap and the expected cost of different schemes. By finding out the relationship between the profit margin of the two variables, we can choose the best plan. Index comparison refers to the comparison of the economic benefits between different schemes, such as the net present value, internal rate of return, payback period, and rate of return. After a series of comparisons, the best plan is finally determined.

　　 The three is: probability decision method.

The probability decision method is mainly used in the process of risk decision-making. Although the financial risks faced by enterprises are uncertain and incontrollable, we can predict the probability of future risks based on past data. This decision method mainly calculates the expected value of each plan by calculating the probability of its occurrence, and further expresses it by decision diagram. Through vivid contrast analysis, it can make the best decision at a glance.

　　 The four is: mathematical differentiation.

Mathematical differentiation is also a very important decision-making method for financial decision making. In general, the decision making process for optimal capital structure plays an important role in decision-making activities of inventory economic lot size and cash holdings. In the actual work process, if we regard the cost as the sole criterion, we only need to find its minimum value. However, if the profit is taken as the evaluation index, the maximum value of the plan must be worked out. Based on the boundary analysis method, the further solution to the extreme value problem of curve connection is the calculus method we often mentioned in mathematics. This is also a preferred method to help us make scientific decisions.

　　 The five is profit and loss decision making.

Profit and loss decisions are mainly based on a series of decision-making methods under uncertainty. The uncertainty of future can only be predicted by objective evaluation of relevant factors. However, the probability of occurrence is impossible to calculate through calculation. In such a case, it is very difficult to make scientific financial management decisions. In the past work process, when faced with such a situation, it is mainly based on the past work experience, attitude and principles of policy managers, assisted by certain decision-making methods. The profit and loss decision making method mainly includes: large and medium sized enterprises, large and medium enterprises and large and medium enterprises. The law of small and medium-sized enterprises is also called the pessimistic decision-making method. It mainly refers to the way we find their minimum income value by comparing various schemes in the process of making financial decisions, and choose the method of maximum return value among these minimum income values. The law of large and medium-sized enterprises is also known as the optimistic decision method or the risk decision method. It mainly refers to finding out the maximum return net present value of each plan in the process of decision-making and choosing the best one. The small and medium-sized method is also known as the minimum maximum regret value method. It refers to the difference between the maximum regret value of each plan, that is, the difference between the maximum value and the value of the scheme adopted in the process of decision making. Finally, the minimum value of all alternatives is chosen as the optimal solution.