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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.
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
Suppose the spot price of gold is $1700 per ounce. The futures price for delivery in six months is $1712, while the futures price for delivery in one year is $1720. The interest ra
INTERPRATATION OF VARIANCE Controllability, Materiality and Trend are the interpretation of variance. The point of comparing flexed budget and real figures is to see what corre
Steps in Strategic Cost Analysis 1) Recognize the suitable value chain and allocate costs and assets to it. 2) Identify the cost drivers of each value activity and how they int
Cost Behavior A firm's cost position results from the cost behavior of its value activities. The cost behavior is based on a number of structural factors which influence cost
Model Construction The success of a simulation exercise is related to the predictive quality of the underlying model, so that considerable care should be taken with model const
Decision Making Process Decision making is the process of choosing among alternatives. There are 7 steps that should be followed as shown in figure below: Figure:
identify and briefly describe four trends in macro market environment which influence on the selected industry?
Question 1: Assuming that you are appointed consultant on economic matters for a company and you are asked to analyse the market structures in various sectors of the economy.
1) What is the difference between decreasing marginal returns and negative marginal returns? 2.) "A firm in monopolistic competition maximizes its profit by producing where it
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