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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.
limitation
Application of zero base budgeting In the following areas ZBB may be applied: 1) redundant schemes may be discontinued 2) identify the duplicate schemes and merge them in
Explain the Methods of pricing The following methods are used for intra company transfer pricing: 1) Total cost method: transfer is made at absorption cost which is the t
Ask q1. On March 1, 2020, Tahir Muktar, a famous businessman in Addis, opened a business named “Universal Garage” which is organized as a sole proprietorship. The business is estab
Break even point or B.E.P. pricing method : Break even point is the volume of sales at which the total sale revenue of the product is equal to its total cost. In other words, it
Cost-volume relationship utilization Cost-volume-profit study is an estimating concept which can be employed in a variety of pricing circumstances. You can employ the cost-volu
explain briefly variable cost, fixed cost and semi- variable in the production cost of a productor service, giving example for each
Ask question Toll House makes chocolate chip cookies. The cookies pass through three production processes: mixing the cookie dough, baking, and packaging. Toll House uses process c
Yolande Tzar came to Northern Ireland from Poland five years ago to study at university. After graduating she worked as a sales manager for a local company and saved her wages to b
How can we draw a break even chart Under this method the variable cost line is drawn first and then fixed cost line is drawn over and parallel to the variable cost line. The fi
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