Advantages of value added statements, Managerial Accounting

Assignment Help:

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.


Related Discussions:- Advantages of value added statements

Need help with one question, Decide which costs are associated with the ass...

Decide which costs are associated with the assignment of cost for a Job Order Costing System. Select all that apply. cost graphs (Points : 1) Raw materials are used

Classification of ratio according to significance, Classification of ratio ...

Classification of ratio according to significance   The ratios have also been classified according to their significance. Some ratios are more important than other and the fir

Explain performance budgeting according to seal and summers, Explain perfor...

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

Coefficient of determination, Coefficient of Determination (r 2 ) If th...

Coefficient of Determination (r 2 ) If the regression line calculated by the least square method were to fit the actual observations perfectly, then all observed points would l

Accounting exam, hello do your staff help with exams ?

hello do your staff help with exams ?

Explain out of pocket cost, Explain Out of pocket cost A cost which wil...

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

Explain the break-even analysis, Explain the Break-Even Analysis  The s...

Explain the Break-Even Analysis  The study of cost volume profit analysis is often referred to as break-even analysis and the two terms are used interchangeably by many. This i

What are the duties of the public company aob, What are the duties of the P...

What are the duties of the Public Company Accounting Oversight Board?

Study guide , The following information pertains to Fairways Driving Range,...

The following information pertains to Fairways Driving Range, Inc.: The company is considering operating a new driving range facility in Sanford, FL. In order to do so, they will

Steps of choosing an accounting based performance, Steps of choosing an acc...

Steps of choosing an accounting based performance measure Consider the overall goal of the organization as a whole. It is important to choose a measure of accomplishment that r

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd