LEARNING OBJECTIVE LO1: Explain why accounting is essential for decision makers and managers. LO2: Describe the major users and uses of accounting information. LO3: Explain the role of budgets and performance reports in planning and control. LO4: Describe the cost-benefit and behavioral issues involved in designing an accounting system. LO5: Discuss the role accountants play in the company’s value chain functions. LO6: Identify current trends in management accounting. LO7: Explain why ethics and standards
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Business Plan Pakmarica Painters is a new company and is a sole- proprietor business made of one principal owner with combination of experience of 30 years in the painting industry. Pakmarica Painters will be owned and directed by Anisa P Khan. The owner will be contributing a considerable amount of her own resources into the business and will also be trying to obtain funding of $50,000 to cover start the business and future development of the business. the company. The business has secured
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Unit 1 Lecture This unit explores the general business environment, in the Prologue, and the reason for the existence of managerial accounting in Chapter 1. Managers are in need of information. Managerial accounting is the vehicle that satisfies that need. Without reasonable, valid, timely information companies will always be at a disadvantage when it comes to competing in the marketplace. Managers use the provided information to carry out three major activities: planning, directing and motivating
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costs of products are the cost of resources. Its main focus is on the relationship between activity, cost driver, cost, cost pool and cost object. Traditional cost accounting is inadequate so that become activity based costing more relevant. Activity based costing gained support because of the limitations of traditional cost accounting. It is focuses on departments, cost centres or divisions and not an activity. For example, the production overhead is increase while the labour hours decrease due to
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In deciding whether to continue, discontinue or sell a subsidiary company, we should consider the benefits and disadvantages of each option. We gauge the contribution of a subsidiary not only by looking at its profitability but also the advantage it can give to the parent company particularly in reducing its costs. Having a low profitability or even a net loss does not necessarily mean that the decision of retaining the subsidiary is wrong. Separating the relevant costs from the irrelevant costs
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Managerial Economics Case Number 6 Topic: Elasticity of Demand Objective: a) To apply the concept of elasticity of demand b) To correlate elasticity with decision making University fees – part I President Jones of Indian Institute of Business Economics (IIBE) is concerned about the financial state of his institution. Last year there was a loss of Rs.1.5 million and the trustees are getting restless. Currently there are 1000 full-time students, 700 of whom are degree students from their country
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OBJECTIVTIVE: Implement the Model 801 accounting system on the network. Install the Model 801 software, including implementation and setup, training, conversion assistance and support of accounts payable and receivables department. The success of this project depends not only on the software, but on your personnel’s skill, effort and willingness to work with each other as a team. SCOPE OF SERVICES 1. Procedures A. Assist in planning and implementation of the model 801 accounting system. B. Recommend steps
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Activity-Based Costing Activity-Based Costing (ABC) attempts to more accurately assign overhead costs to the users of overhead by focusing on activities. The basic principle underlying activity-based costing is that an activity, which is a task, operation, or procedure, is what causes costs to be incurred. For example, cutting raw materials consumes, labor and machine hours. Likewise, warehousing products consumes resources (costs) such as employee time for driving a forklift, the electricity to
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COST-VOLUME-PROFIT RELATIONSHIPS 1. Distinguish between variable and fixed costs. Variable costs are costs that vary in totaldirectly and proportionately with changes in the activity index. Fixed costs are costs thatremain the same in total regardless of changes in the activity index.2. Explain the significance of the relevant range. The relevant range is the range of activityin which a company expects to operate during a year. It is important in CVP analysisbecause the behavior of costs
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CHAPTER ONE 1.0 INTRODUCTION Accounting software packages have become common place for many organizations in recording business transactions, preparing financial statements and analyzing operations. Accounting software has freed accountants from the manual recording and presentation of financial data. By using accounting software, financial transactions would be recorded more quickly and accurately at a relatively low cost. Moreover, accounting software packages increased overall operational effectiveness
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