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VALUE ADDED STATEMENTS
Are intended to show how much wealth or value has been created by the company’s operations and how the wealth has been shared out to interested groups e.g. shareholders, investors in debt capital, employees, government and the amount retained for re-investment. The value added statement exhibits:
The difference between the purchase cost of external material and services and the selling prices of the company goods and services is the value/wealth created by the company itself. This is termed to as value added. Value added statements can provide additional information to senior managers to help them in comparing performance of different divisions.
Product life cycle costing It is an approach used to give a long term picture of product line profitability feedback on the effectiveness of life cycle planning and cost data t
Private sector companies have multiple stakeholders who are likely to have divergent interests.( five stakeholder groups and discuss their financial and other objectives).
Define Activities based costing by horngren According to horngren " ABC is a system that focuses on activities as fundamental cost object and utilizes cost of these activi
identify and explain the many classification of costs for planning, control,performance evaluation and decision making.
MAKE OR BUY DECISIONS UNDER LIMITING FACTORS One reason for buying products/services from another organisation is the scarcity of resources, so that the company may be unable t
Phases of product life cycle The life cycle of a product having of four phases viz., introduction growth maturity decline during introduction phase a product is launched into
The Simplex Method In the graphical solution the optimum solution is always associated with a corner (or extreme) point of the solution space. The simplex method is based funda
calculate the net operating income , evergreen corp has provided the following data: sales per period 1000 units ,selling price $ 40 per unit , variable manufacturing cost 12 p
Optimum Solution From the stand point of implementing the LP solution, the mathematical classification of the variables as basic and non-basic is of no importance and should be
Morrow Company applies overhead based on direct labor hours. At the beginning of the year, Morrow estimates overhead to be $620,000, machine hours to be 180,000, and direct labor h
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