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Profitability ratios
The primary objective of a business under taking is to earn profits. Profit earning is considered necessary for the survival of the business. A business requires profit not only for its existence but also for diversification and expansion. Profits are thus a useful measure of overall efficiency of a business. profits to the management are the test of effectiveness and a measurement of control: to owners a measure of worth of their investment a measure of tax paying capacity and the basis of legislative action to customers source of finance for growth and existence and finally to the country profits are an index of economic progress profitability ratios are calculation to measure the overall efficiency of the business.
Markov Chains: Markov Chains are named after the Russian statistician A.A Markov who developed probabilistic models that are often applicable to decision making problems in bu
Transfer pricing with third party consequences Transfer prices are used not only for internal record keeping and performance evaluation purposes. There are several settings
11.1 Process Solutions provides a computer-based document processing service. The accountant has produced the following analysis. Standard Modified Advanced Sales quantity 1,000
meaning standard costing
Echeverria SA is an Argentinian manufacturing company whose total factory overhead costs fluctuate somewhat from year to year according to the number of machine-hours worked in its
Exercise 12-7 sell or process further
accepted#Regarding the Overhead costs, these are allocated based on Direct Labor;
identify and explain cost classification for performance evaluation
What are the features of performance budgeting The main features of performance budgeting are: a) Classification into functions activities or programmers. b) Specifyi
BENCH MARKING In the current business environment, organizations are under a lot of pressure to improve performance and that of their divisions or subsidiaries. Bench marking i
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