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Analysis
Various business decisions have recurrent themes: whether to the outsource production or to the support functions, what level of production and pricing to establish, whether to accept the special orders with the private label of branding or the special pricing, and many more
Managerial accounting gives us the theoretical models of calculations which are required to support these types of decisions. Though such models are not perfect in every case, they surely are effective in stimulating correct thought. The apparently obvious answer may not always yield truly correct or best decision. Therefore, subsequent chapters will provide insight into the logic and methods/technologies that need to be employed to manage these types of the business decisions.
ALGEBRAIC ANALYSIS The supposition of linear cost behavior allows use of straight-line graphs and simple linear algebra in cost-volume study. The net cost is a semi-variable c
M/s Sunrise Industries estimates its net cash requirement at Rs. 20 million for the subsequent year. Opportunity cost fund is 15 percent per annum of the Companies. The company wil
ARR gives a fast estimate of a project's value over its useful life. ARR is derived by determining profits before taxes and interest. ARR is an accounting technique used fo
Characteristics of irrelevant costs
Case Study Labor standards Geeta & Company has experienced increased production costs. The primary area of concern identified by management is direct labor. The company is conside
Accounting Profit is a company's sum total earnings, computed according to Generally Accepted Accounting Principles (GAAP), and involves the explicit costs of operating business, l
Requirements of a good budgeting system Following are the requirement of a good budgeting system: 1) Budgeting process should be backed and supported by the chief executive
Multi-collinearity Multiple regression analysis is based on the assumption that the independent variables are not correlated with each other, whenever the independent variables
What is the definition of internal controls
Extensions to Linear Programming In many real situations the solutions to linear programming models make sense only if they have integer values. Rounding off the linear programmi
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