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A managerial accounting strategy focusing mainly on maintaining efficient levels of both components of working capital that is current assets and current liabilities, with respect to each other. Working capital management assures that a company has enough cash flow so as to meet its short-term debt obligations and operating expenses.
Working capital management is concerned with making sure we have exactly the right amount of money available to the business at all times. If a business has no idea about its liquidity and working capital situation then it could be in serious trouble.
This is a most familiar form of medium term financing in obtaining plant and vehicles, machinery etc. In hire purchase transactions, the purchaser of goods will obtain the possessi
Conduct a time series analysis base on the three years accounting ratios
Significance points of Variance The following significant points must be kept in mind: Controllability: Controllability should also influence the decision whether t
Acceptance and Allocation of Resources Managers, subsequent a review and analysis of all decision packages, will establish the level of resources to be assigned to each decisi
Determine Cost pool and Cost drivers Cost pool: it is another name given to a cost centre and, therefore an activity cost centre may also be termed as an activity cost pool.
Explain the External factors of pricing decisions 1) Demand: the market demand for a product or service obviously has big impact on pricing. Since demand is affected by fact
Costing Cost accounting can be described as the collection, interpretation of cost and assignment. In succeeding chapters, you will learn about alternative costing techniq
a cost-allocation base may be any of the following except: a. cost driver b. cost pool c. way to link indirect cost to a cost object d. nonfinancial quantity
underlying assumptions of breakeven analysis and the limitations of this.
THE BREAK EVEN POINT
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