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After going through this section, you must be capable to:
Know the need for establishing sound credit policy;
Identify the different credit policy variables;
Know the credit evaluation process;
Identify the techniques of monitoring receivables and
Identify the notion of factoring.
Explain the Objectives of management accounting? 1. Planning and policy formulation: the object of management accounting is to supply necessary data to the management for fo
Stages in activity based costing The different stages in activity based costing are listed below and are shown in figure below. 1) Identification of the activities that may
Decision-making is an integral part of all management functions. It is the process of choosing the among alternative courses of action. Managers have to
Classification of ratio according to significance The ratios have also been classified according to their significance. Some ratios are more important than other and the fir
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Algebraic method of the break even point The break even point can be computed by the following method: a) Units of sales volume . b) Budget total or in terms of money va
Quick ratio Meaning: this ratio establishes a relationship among quick assets and current liabilities Objective: the objective of commuting this ratio is to calculate th
Describe the Limitations of management accounting: 1. Based on accounting information: the correctness and effectiveness of managerial decisions will depend upon the quality
Analysis Various business decisions have recurrent themes: whether to the outsource production or to the support functions, what level of production and pricing to establish, w
Explain the Break-Even Analysis The study of cost volume profit analysis is often referred to as break-even analysis and the two terms are used interchangeably by many. This i
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