Advantages of value added statements, Managerial Accounting

Advantages of Value Added Statements

1) Managers might be in a better position to control their organizations own inputs than the cost and usage efficiency of purchased material and services. Value added statements focus on what managers can do something about.

2) Value added statements can reflect the quality and success of management effort.

3) Value added statements also focus attention on how the benefits are shared out and in particular:

4) Whether employees are paid too much for what they are doing.

5) Whether enough funds are being retained in the business in the form of internally funded growth.

6) Value added in relation to labor cost provide excellent measures of productivity and therefore can be used for comparing the relative productivity of two or more divisions.

Posted Date: 12/8/2012 4:59:17 AM | Location : United States







Related Discussions:- Advantages of value added statements, Assignment Help, Ask Question on Advantages of value added statements, Get Answer, Expert's Help, Advantages of value added statements Discussions

Write discussion on Advantages of value added statements
Your posts are moderated
Related Questions
Suggestion system  The suggestion system is as integral part of an established management system that aims at involving employees in kaizen. The number of worker s suggestion i

Master budgeting Jaya Sdn. Bhd. is a wholesaler. The management of Jaya Sdn. Bhd. has been extremely worried about the company''s cash position over the last few years. In July 201

Fixed assets turnover ratio Meaning: this ratio establishes a relationship among net sales and fixed assets. Objective: the objective of computing this ratio is to verif

Advantages and limitations of game theory Advantage: Game theory helps us to learn how to approach and understand a conflict situation and to improve the decision maki

Independence of observations An important assumption for the simple linear regression model is the independence of errors. In many time series models, this assumption is violat

Kibble Company had the following functional income statement for the month of July 2011: Kibble Company Functional Income Statement For the Month Ending July 31, 2011 Sales ($40 x

You are required to provide a report of approx 500 words or less (excluding attachments and references), accompanied by relevant calculations, in MS Word, MS Excel and/or PDF forma

Cost concept . techniques of costing . absorption costing

select any manufacturing company of your choice that produces any product. describe and compare the marginal and absorption costing system used in the selected company

Weldon Industrial Gas Corporation supplies acetylene and other compressed gases to industry. Data regarding the store''s operations follow: 500 Garrison, Managerial Accounting, 12t