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Identification of decision packages - Zero base budgeting
Each manager should break down his decision unit into smaller decision packages. Top manager may lay down the minimum organizational level for developing decision packages. A decision package has been defined as a document that distinctly identifies a function operation or an activity. A decision package will be evolved with reference to particular circumstances. A decision packages should have following elements:
Basic identification of data, i.e., the economic benefits of attempting the program and risk involved in description of programmer goal.
Feasibility assessment i.e., the economic benefits of attempting the programs and risk involved in discarding the programmer
Alternative coursed of action for attempting the programmer
A decision unit may also specify intangible benefits i.e., benefits which cannot be identified
After determining the amount of working capital as in above, a specific amount say 5 percent or 10 percent may be added to cover contingencies. This is to be noted that facts depen
In this method, approximation of various assets here excluding cash and including liabilities are made getting into consideration the transactions in the ensuring period. Afterward
Introduction to Performance Evaluation Performance evaluation deals with the area of MA that is concerned with: 1) Holding individual managers responsible for certain aspect
Tom Emory and Jim Morris strolled back to their plant from the administrative offices of Ferguson & Son Manufacturing Company. Tom is manager of the machine shop in the company''s
how to i get financial report for my company Anuz Wpp
The Ragan Corporation uses a process cost system. The company started March with 2,300 units in Work in Process-Dept. A. During the month 4,000 units were started. At the end of th
Advantages of zero base budgeting 1) it provides a basis for evaluating decision packages on the basis of benefit considerations 2) it reduces inefficiency and achieves high
What are the factors which led to the development of ABC: 1) Traditional costing fails to capture cause and effect relationship 2) Traditional costing often fails to highlig
Explain the External factors of pricing decisions 1) Demand: the market demand for a product or service obviously has big impact on pricing. Since demand is affected by fact
MOTIVES FOR HOLDING INVENTORIES If production and delivery of goods were instantaneous, there would be no need for inventories. However in reality, the manufacturing and purcha
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