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Use of accounting, cost estimation, and Pricing
Assume/you are a manager of a company. The company is deciding on different issues in the day to day operation. Besides, there is a planned new project that will require ETB 7,500,000 capital investment to produce 80,000 units. The company (pretax) target rate of return on investment is 30% while the unit cost is ETB 1000. Answer the following questions;
Question a. How do you explain the value of accounting (management accounting and financial accounting) and finance in day to day operation and project evaluation?
Question b. To estimate the cost of the new project, what estimation method do you think is appropriate? /why?
Question c. What will be the sales price of the product using cost-plus pricing?
the city purchased new computer equipment costing 19000 by paying 3000 in cash and signing a long-term note payable for
The net cash flow from operating activities The net cash flow from investing activities The net cash flow from financing activities
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