data warehouse. But actually there is a difference between the two of them. The traditional database stores transactional data like relational, object oriented, network or hierarchical. While the data warehouses are mainly developed for retrieving historical transaction data for management, executives
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Property, Plant and Equipment Property, Plant and Equipment I- Nature of Accounting Issues Businesses purchase and use a variety of fixed assets, such as equipment, furniture, tools, machinery, buildings, and land. These fixed assets are long-term or relatively permanent assets. Also, they are tangible assets because they exist physically. They are owned and used by the business and are not offered for sale as part of normal operations. Perhaps the most descriptive titles these assets are
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Net Present Value Net Present Value Formula Net Present Value (NPV) is a formula used to determine the present value of an investment by the discounted sum of all cash flows received from the project. The formula for the discounted sum of all cash flows can be rewritten as Net Present Value Alternative Formula When a company or investor takes on a project or investment, it is important to calculate an estimate of how profitable the project or investment will be. In the formula, the -C0 is the
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healthy returns. Divisional performance measures The appropriate return on investment (controllable ROI) is calculated on profit before interest and tax divided by capital employed at the division. The profit figure excludes allocated head office costs as these are not controllable at divisional level. The residual income takes the same profit figure but subtracts a notional interest charge based on the capital employed by the division. Both divisions are offering good returns with positive RI and
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CHAPTER I INTRODUCTION This Chapter presents the background of the study, statement of the problem, significance of the study and operational definition of terms. Background of the Study An Enterprise Resource Planning (ERP) System has an enormous effect on a business which includes information sharing, business planning and decision making on an enterprise-wide basis, Therefore it allows each department to share information and communicate which greatly benefit for a more productive and
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into a ratio analysis. Common size analysis, and accounting analysis limitations are tools for review. The pros and cons of each of these statistical tools will also be discussed. To understand the importance of statistical tools, a review of ratio analysis, common size analysis, and accounting analysis limitation will be the starting point for this paper. Ratio Analysis Ratio analysis is the most powerful tool of financial analysis (Accounting for Management, 2012, para. 1) used to evaluate
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attempt to define the nature and purpose of accounting. A conceptual framework must consider the theoretical and conceptual issues surrounding financial reporting and form a coherent and consistent foundation that will underpin the development of accounting standards. Conceptual frameworks can apply to many disciplines, but when specifically related to financial reporting, a conceptual framework can be seen as a statement of generally accepted accounting principles (GAAP) that form a frame of reference
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method of accounting that used various techniques to assign costs to particular cost objectives, e.g. the cost to perform an activity, produce a product or render a service. W.B. Lawrence stressed the importance of accountants becoming familiar with cost accounting in his 1930 text because even then, “the modern factory occupies more space and employs many more workers than did the factory of a generation ago”. In 1940, John Blocker recommended in his text additional uses for cost accounting in other
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Management HSA House Keeping Service Department of Ruger Clinic Wiley (2004) defines cost volume profit (CVP) as an accounting method that is used to analyzes changes in profit as they are related to sales, volume, cost and pricing. This is an important tool for managers because the information the analysis provides is used to project various operation requirements. A cost volume profit analysis reflects: which product or service should be focused on, the volume needed to reach
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Oksana Simakina, Masayuki Kondo, Rui Dias, Andres Losada, Zsolt Makai) 1. What is the WACC and why is it important to estimate a firm’s cost of capital? Do you agree with Joanna Cohen’s WACC calculation? Why or why not? WACC is the rate that a company is expected to pay to debtors and creditors. A weighted average of the component cost of debt, preferred stock, and common equity. (Birgham & Houston, 2009) This is the minimum rate that a company must earn on its assets in order to satisfy
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