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CONTIGENCY THEORY
Some researchers have argued that the context in which budgetary control is used is as important as the style in which it is implemented and used. This is termed as the contingency theory. The contingency approach to management accounting is based on the assumption that there is no universally appropriate accounting system applicable to organizations in all circumstances. Rather contingency theory attempts to specific aspects of an accounting system that are associated with certain defined circumstances and demonstrate an appropriate matching.
Major factors recognized are:
Environmental factors like:
Organizational Structure Factor including:
Technological Factors such as:
THE BREAK EVEN POINT
State the factors of CVP The three factors of CVP analysis I e cost volume and profit are interconnected and dependent on one another . for example profit depends upon sales se
Objective Function Although the standard LP model can be either the maximization or the minimization type, it is sometimes useful to convert one form to the other. The maximiz
Planning Planning is the fundamental function of the management by means of which the managers decide: What goals are to be accomplished How they will be accomplished.
Question 1 The following items are found in the trial balance of M/s Sharada Enterprise on 31st December, 2000. Sundry Debtors
The Pinewood Furniture Company Pty Ltd plans to design two lines of chairs in the coming year-lounge and patio. The company is considering introducing an activity-based costing sys
Cost concept . techniques of costing . absorption costing
SENSITIVITY ANALYSIS OF EOQ MODEL Sensitivity Analysis is regarded with the manner in which those results of solutions change in response to change in model parameters.
Number of Operating Cycles: The number of operating cycles in a period is determined by dividing the number of days in a year i.e.365 by the length of net operating cycle. Express
Answer each of the following independent questions in the space provided on page 11. Round all computations to the nearest dollar. a) Company A deposited $15,000 in a savings ac
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