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Management Accounting
1) Which is concerned with provision of information to people within the organization to help them make better decisions? Management accounting is concerned with the provision and interpretation of the information required by management at all levels for the following purposes:2) Formulating the policies of the organization3) Planning the activities of the organization in the long-term, medium-term and short-term (Strategic to operational planning)4) Controlling the activities of the organization.5) Decision-making6) Performance appraisal7) Management accounting can also be said to be concerned with data gathering (both from internal and external sources), analyzing, processing, interpreting and communicating the resulting information for use within the organization, so that management can more effectively plan, make decisions and control operations.
Disadvantages of incremental budgeting a) Incremental budgeting suppose activities and method of working will continue in the same way b) No incentive for developing their d
Risk : Risk includes circumstances or events that may or may not take place though whose probability of occurrence can be predicted from the past records. In this atmosphere, t
Pike Corporation paid $100,000 for a 10% interest in Salmon Corp. on January 1, 2010, when Salmon''s stockholders'' equity consisted of $800,000 of $10 par value common stock and
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
Advantages of activity based costing 1) It helps understanding the behavior of overhead costs and their relations ship to products services customers and market segments. 2)
Coefficient of Determination (r 2 ) If the regression line calculated by the least square method were to fit the actual observations perfectly, then all observed points would l
Financial Perspective How do we produce value for our shareholders? This perspective covers traditional measures e.g. growth, liability, shareholder value. But these are set on
when assessing Market Value of common stock, is the "market value" the market value when the company sold the stock or the current market value?
RULES OF GAME THEORY 1) The number of competitors is finite. 2) There is a conflict of interests between the participants. 3) Each of these participants has available to
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