Illustration of short-term decisions, Managerial Accounting

Illustration of short-term decisions

These are, to a significant extent, determined by the excellence of the firm's long-term decisions. Illustration of short-term decisions includes the following:

1. What selling prices should be set for the firm's products?
2. How many units must be generated of each product?
3. What media shall we use for advertising the firm's product?
4. What level of service shall we recommend customers in terms of the number of days needed to deliver an order and the after-sales service?

Data must also be gathered for short-term decisions; for illustration, data on the selling prices of competitor's products, predicted demand at alternative selling prices, and predicted costs for various activity levels should be assembled for pricing and output decisions. Whenever the data has been gathered, management must decide which course of action to take.

Posted Date: 12/4/2012 6:37:37 AM | Location : United States







Related Discussions:- Illustration of short-term decisions, Assignment Help, Ask Question on Illustration of short-term decisions, Get Answer, Expert's Help, Illustration of short-term decisions Discussions

Write discussion on Illustration of short-term decisions
Your posts are moderated
Related Questions
Comparing real and planned outcomes and responding to Divergences from Plan The final phases in the process outlined in figure shown below of comparing real and planned outcome

When forming a company, the options are sole proprietor, partnership, and corporation. Most choose corporation. Why is the corporate form seen to be best? What rights do the stockh

A cash budget is one of the main important devices to plan and control cash payments and receipts. In preparation of a cash budget the subsequent points are considered. Cred

Types of Simulation 1) Operational Gaining Method: This refers to those situations involving conflict of interest among players or decision makers within the framework o

engineering method of cost estimation

After determining the amount of working capital as in above, a specific amount say 5 percent or 10 percent may be added to cover contingencies. This is to be noted that facts depen

1. In common, accounting period is the time period reflected by a series of financial statements.  2. In terms of taxation, it is twelve-month period a taxpayer uses to know

Disadvantages of the cost accounting: 1. It is unnecessary: it is argued that maintenance of the cost records is not necessary and involves duplication of work. It is based o

Explain Out of pocket cost A cost which will have to be paid to outsides as against cross such as depreciation, which do not require any cash payment this cost is relevant in t

What does it mean when we say consistency is the central feature of economic rationality?