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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
After going through this section, you must be capable to: Know the concept and characteristics of working capital; Identify with the difference among net working capital
When forming a company, the options are sole proprietor, partnership, and corporation. Most choose corporation. Why is the corporate form seen to be best? What rights do the stockh
Improvement in product design may result in cost reduction illustrated below: 1) Material cost : change in design of the product may result in saving in material cost. Economi
Explain Programmer budgeting According to burkhead According to burkhead a program budget serves a different purpose than performance budget. A performance budget is useful fo
their definitions and the advantages and disadvantages
Explain Short term budgets Short term budgets: these budgets are generally for one or two years and are in the form of monetary terms. The consumer's good industries like su
The Braggs & Struttin' Company manufactures an engine for carpet cleaners called the "Snooper." Budgeted cost and revenue data for the "Snooper" are given below, based on sales of
As an MBA Managerial Accounting Student, John has asked you to evaluate the alternatives available and make recommendations as to the best course of action, and present it in a Rep
WHY VARIANCES IS INVESTIGATED UNDER STANDARD COSTING
Variances Analysis Variances are the differences between actual results and expected results. Expected results are the standard costs and standard revenues. Price, rate and
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