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
#question1-50..

State the price determination under the market condition The price determination under the following market condition is as follows: 1) Pure competition: in this situation

Under this method, approximation is made of payments and cash receipts in the ensuring period. The dissimilarity of these payments and receipts indicates deficiency or surplus of c

State (or select) the dependent variable (Y) Will the CER be employed to estimate price, labor hours, cost, material cost, or some other measure of cost? Will the CER be employ

opening stock unit were 8500 and closing stock units were 6750.frofit of 61200 using managerial costing.fixed overhead absorbed rate was 3 pr unit.what is the profit using absorpti

Risk : Risk includes circumstances or events that may or may not take place though whose probability of occurrence can be predicted from the past records. In this atmosphere, t

What are Selling and distribution expenses? Selling and distribution expenses incurred for the marketing of a commodity, for securing orders for the articles, dispatching goods

What is the definition of internal controls

Advantages of Simulation 1) It can be used in areas where analytical techniques are not available or would be too complex. 2) Constructing the model inevitably must involve

Explain performance budgeting according to seal and summers According to seal and summers performance budgeting comprises three elements:  a) The result (final outcome)