Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Management Accounting Influence
(A) Transfer pricing and performance measurement relies upon the judgment of the management accountant to make a suitable choice of approach and to calculate suitable values where appropriate.
(B) Values which are suitable for performance measurement purposes are not necessarily suitable for decision making, planning and control purposes. For planning purposes, reasonable future forecasts or targets which meet long-term planning requirements present two acceptable approaches and incremental budgeting offers a third means by which values can be established in practice. For control purposes, values should ideally be set just above aspiration levels. For performance measurement purposes, values should be set which avoid sub-optimization and dysfunctional behavior and which further the objectives of the performance measurement scheme and of the company in general. It is unlikely that a single value can meet all requirements.
In some circumstances, multiple values can be established. In overcoming the problem of setting up reliable and valid values for control, planning, decision making and performance measurement needs, however, further problems may arise. Imagine that a company establishes one target for performance measurement purposes and another, lower value, for planning purposes. The planning value must be kept secret from the divisional manager if it is to motivate since some types of manager may lower aspiration levels to the planned target. Secrecy can have detrimental effects to the coordination and communication objectives of budgeting. Again, the behavioral consequences of establishing values are of paramount importance and the management accountant finds that effective accounting is partly based on setting up sound systems at the technical level and partly based on setting up systems which work for the people within the organization.(C) Emphasis on cost, profit and investment centre performance in the short term can have detrimental effects on the organization in the long term.
SSI, a meat/burger/chicken processing manufacturing plant loacted in Idaho, USA prepares
opening stock 19000 closing stock 21000 sales 200000 gross profit 25% on sales calculate stock turnover ratio
State (or select) the dependent variable (Y) Will the CER be employed to estimate price, labor hours, cost, material cost, or some other measure of cost? Will the CER be employ
#labour costing techniques
Replacement cost It is the cost of replacing a material or asset, by purchase from the current market. If an X material was originally purchased @ Rs. 250 per Kg. And know i
Cascade Water Company (CWC) currently has 30 000 shares of common stock outstanding, trading at a price of R42 per share.
Characteristics of irrelevant costs
I don''t know how to do a variable income statement. Here is my assignment: The Used Books Company is a small online retailer operating out of a garage apartment. The owner buys
WHY VARIANCES IS INVESTIGATED UNDER STANDARD COSTING
Collection float considers to the gap among the times, payment is made through the customer/debtor and the time while funds are obtainable for use in the company's bank account. In
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd