Reference no: EM131368064
1. Why does a business care about the true cost of a product and why is finding that true cost sometimes difficult? Provide examples.
2. Compare and contrast managerial accounting and financial accounting and why are both important?
3. What are the types of financial ratios and which do you think are most useful and why?
4. Why do I call a budget “choices” and what implications does changing what you call it have on the individuals involved? Are there other reframed words that change the meaning to improve results?
5. What are direct and indirect costs? Why is it sometimes hard to decide which a cost actually should be? Give examples.
6. Explain sunk cost and why it’s so hard to accept in some situations.
7. Explain under and over applied overhead, how it happens and the implications of it.
8. What are the assumptions in Cost-Volume-Profit analysis and do you think they are always adhered to? If not, why not.
9. Why is contribution margin so helpful in making decisions?
10. The significance of cash flow can’t be overstated, but you should try. Make the case for the importance of cash flow and why it is the most important thing to be aware of in a business.
Effective annual interest rate of costly trade credit
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