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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.
Private sector companies have multiple stakeholders who are likely to have divergent interests.( five stakeholder groups and discuss their financial and other objectives).
Describe Committed fixed costs Committed fixed costs are those fixed costs that arise from the possession of 1. Plant, building and equipment (for example, depreciation, re
Determine the Zero bases budgeting According to Leonard mere According to Leonard mere, ZBB is a technique which complements and links the existing planning budgeting and revi
Advantages of ratio analysis 1) Helpful in financial analysis: financial analysis is easier if accounting ratios are used to analyze the different financial statement relatio
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
analyse the methods of capital investment appraisal
A company is preparing a value in use calculation for a factory building and the equipment used to make a particular product. It has prepared cash flows for the next five years fro
The Rohr Company’s old equipment for making subassemblies is worn out. The company is considering two courses of action: (a) Completely replacing the old equipment with new equipme
Steps making DecisionTree A decision tree is a graphical representation of decision process indicating decision alternatives, states of nature, related probabilities and condit
Explain decision unit - zero base budgeting Decision units: an organization is divided among decision units. The manager of the decision unit justifies the relative budget
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