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In the earlier unit, we have studied how firms determine their requirements for current assets and manage their holdings in cash and marketable securities. Inside a classical manufacturing company the debtors to net asset ratio vary from 20 to 25 percent that is a considerable investment of funds. The effective management of this benefit will have an important effect on the company's profitability. The receivable or debtors arise because of credit sales that is undertaken so as to encourage customers to purchase services or goods. Accounts receivable utilize funds, and tying up funds in these investments has a related cost that must be considered along with the advantages from enhanced sales of services and goods. In this section we are going to discuss the different issues included in management decisions of extending credit as accounts receivable.
Going rate or follow the crowd pricing:- In this method the firm price its products at the similar level as that of the competition. This method supposes that there will be no
Objectives of the cost accounting The Objectives of the cost accounting are ascertain of costs, fixation of selling prices, proper recording and presentation of cost data to th
define budget control system
Case Study Labor standards Geeta & Company has experienced increased production costs. The primary area of concern identified by management is direct labor. The company is conside
taking the role of a consultant, discuss the factors you would consider in selecting a suitable accounting system solutio for a small to medium enterprise. i has to be 1200 q\work
what is the topic about? what are the practical implications? what are the practical criticisms?
Implementation of the Decisions Once alternative courses of action have been chosen, they must be implemented as part of the budgeting procedure. The budget is a financial plan
Computing equivalents units and assigning costs to completed units and ending work in process; no beginning inventory or cost transferred in (30 -45min) Sue Electronics makes CD p
Review the options and views available to answer the following questions: 1. What sort of information is being provided by the dashboard? What visual objects are used? Wh
Batch size of one Set up time is the amount of time needed to adjust tools and to retool for various product. Long set ups a change over time make the production of batches wit
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