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VALUE ADDED STATEMENTS
Are intended to show how much wealth or value has been created by the company’s operations and how the wealth has been shared out to interested groups e.g. shareholders, investors in debt capital, employees, government and the amount retained for re-investment. The value added statement exhibits:
The difference between the purchase cost of external material and services and the selling prices of the company goods and services is the value/wealth created by the company itself. This is termed to as value added. Value added statements can provide additional information to senior managers to help them in comparing performance of different divisions.
THE BASIC EOQ MODEL This is the most simple of all the models discussed. In addition to the general assumptions which relate to all deterministic models (i.e. certainty of all
Question 1 A healthcare company specializes in hip, knee and shoulder replacement operations, known as surgical procedures. As well as providing these surgical procedures, the
Contribution margin Analysis Contribution Contribution is the difference between sales and variable cost or marginal cost of sales . if may also be defined as the excess
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
Coefficient of Determination (r 2 ) If the regression line calculated by the least square method were to fit the actual observations perfectly, then all observed points would l
Marginal cost or incremental cost pricing method: Here the company may work on the premise of recovering its marginal cost and getting a contribution towards its overheads. Thi
Explain Administration cost and Pre production costs Administration cost: The cost of formulating policy, directing the organization and controlling the operating of an u
Types of Costs In short run, costs can be of three general kinds: Fixed Cost: Total fixed costs stay constant as volume differs in the relevant range of production. Fixe
select any manufacturing company of your choice that produces any product. describe and compare the marginal and absorption costing system used in the selected company
Identify the management assertions related to each of the fictitious supplier credits and unrecorded amounts in accounts payable using the facts presented
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