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Explain Ranking of decision packages - zero base budgeting
Ranking of decision packages: by ranking the decision packages a company will be able to weed out a lot of marginal efforts. The scarce resources of organization should be directed to most promising line only. Ranking implies determining the priorities among the available decision packages. Ranking of decision packages is an important exercise and should be attempted only by those who have the requires knowledge and experience. Initial ranking can be conducted by sectional managers and it can afterwards be reviewed by a committee including the departmental heads. A decision package is ranked keeping the following points in view:
Necessity of introducing programmers
Technical competence of company for attempting the programmers
Economic benefit analysis relating programmers
Study of risk involved in abandoning the programmer
Significance points of Variance The following significant points must be kept in mind: Controllability: Controllability should also influence the decision whether t
M/s ABC is seeing relaxing its collection efforts. At current its sales are as Rs.40 lakhs, the ACP is here 20 days and variable cost to sales ratio is .8 and bad debts are as .05
Accounting Profit is a company's sum total earnings, computed according to Generally Accepted Accounting Principles (GAAP), and involves the explicit costs of operating business, l
Cyclic Chains: In Markov Chains the current state of the system depends on all previous states. It is a stochastic process. Sometimes transition probability matrices are diff
FOR each of the following cases, indicate why management and the auditors determined that control deficiency was a material weakness. Case1. In our assessment of the effectiveness
Use of Budgetary controls Budgetary controls are used for the following reasons: 1) To state the objectives of the organization as a whole. 2) To reveal the extent by whi
Sales of Cool-Man air conditioners have increase steadily during the past five years: Year Sales 1 450 2 495 3 518 4 563 5 584 6 ?
Determine the Profitability ratios in relation to investment a) Return on capital employed/ return on investment b) Return on equity or return on equity share holders' funds
Select the cost driver(s): This might also be termed to as independent, explanatory or predictor variable. A cost driver can be stated as any factor whose change causes a chang
chapter 5 solution
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