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Explain the techniques of performance budgeting
It will also be useful to examine the three major aspects of this technique:
Structural aspects: the structural aspects involve the development of suitable classification of functions programmer and activities.
Analytical aspects: the analysis aspects of performance budgeting will identify the alternative programmer and activities on the basis of cost benefit analysis. Then the annual budgets can be prepared incarnating the activities on the basis of priorities
Information aspects: the informational aspects of performance budgets implementation of the budget control and appraisal of achievements.
Cost Analysis purposes For purposes of cost analysis, the desegregation of the generic value chain into individual value activities should reflect three principles that are not
Variances Analysis Variances are the differences between actual results and expected results. Expected results are the standard costs and standard revenues. Price, rate and
Cash is a significant current asset for the operations of business. Cash is the fundamental input that maintains business running smoothly and continuously. In excess of cash and l
This variable deals along with the granting of credit. On one great all the customers are granted credit and conversely, none of them are granted credit irrespective of their credi
STEPS OF DEVELOPING A COST ESTIMATING RELATIONSHIP Firmly speaking, a CER is not a quantitative method. It is a framework for using suitable quantitative methods to quantify a
Difference between managerial accounting and financial accounting are mentioned below Audience – Internal Vs External Format of Reporting – Free format Vs prescribed
Markov Analysis It is a way of analyzing the current movement of some system in an effort to predict the future movement of the same system. There are two elements that must be
Firms need cash to invest in inventory, receivables and fixed assets and to create payments for operating expenses, so as to increase earnings and sales and make sure the smooth ru
Why might managers favour this ABC system instead of the older system that allocated all MOH costs on the basis of direct? labour?
Pricing decision Price may be defined as the exchange of goods or services in terms of money. Without price firm can survive in the society. If money is not there exchange of g
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