Name: Institution: Course: Date: Introduction Since there are many definitions of management accounting, this paper will stick with the definition formulated according to the American Accounting Association. It defines accounting as a process of providing both financial and non-financial to decision makers. The varying nature of business characteristics implies that also techniques used in managerial accounting for each business differ as the business grows. During start up the business rely on
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firm is considering replacing an old machine at a cost of $110,000. The new machine will to last five years with zero salvage value. It will generate expected annual cost savings of $30,000. The current machine will last for another 10 years. The discount rate is 10 percent. Assume that tax rate is zero and the present machine is fully depreciated with a zero salvage value. A. Should the firm replace the old machine? Show NPV calculations. (2 Points) | | |T=0
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maritime industry and establishment of Akademi Teknikal Laut Malaysia (ATLAM) on 15 August 1981. It was then subsequently privatised on 1 January 1997. Its vision was to be a leader in maritime education and training, while its mission was to facilitate value added learning via a conducive environment and provide excellent service to its clients. The academy located in Melaka and Terengganu, had 195 staff by 2001, 89 of them were in administration and the remaining 106 in training. The management structure
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because it is directly related to the rest of the firm. When an economic obstacle happened to Jell -O sales due to erosion, it will leave a significant effect. It can be considered that the erosion might occur due to competition and by judging from Table A, it seems that the erosion due to competition is irrelevant and assumes a very low profitability. However, if we assume that Super project will get into the Jell –O sales and this must be taken as the cost for the project. d)Allocation of the charges
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TUTORIAL 1 BUSINESS PLANNING & FINANCIAL PLANNING 1. Candidate should explain that a stockholder owns part of a company and is entitled to income in the form of dividends. Stockholders also elect directors who run the company. Stakeholders are groups of people who have an interest in how the firm is run. These include stockholders, employees, management, creditors and customers among others. Each group is interested in the firm’s operation and profitability for its own reasons. All stockholders are
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is conducted to have an idea about expected cost and benefit. We will further stretch the cost-benefit analysis later to find out how economic feasible ATLAM is in terms of implementing SAP Technical Feasibility- It represents whether ATLAM has present technical resources and how these resources could be applied
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time of checkout. The point system can be explained as so for every one dollar spent with the store one point is accumulated for that transaction. The existing information technology (IT) database the company utilizes is identified as a “customer table” that has each customer’s mailing information regarding the demographics for birthdays and anniversaries. This will need to be revamped to include the points accrued per capita for Frequent Shopper’s cumulative transactions. When the frequent shopper
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Xin Gu Yao-‐Hsuan Yeh Huiyang Zhou Table of Contents Executive Summary ...................................................................................................................... 2 Evaluation Logic .......................................
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analysis showed that a joint venture requires an €2 million investment, which could be funded by the shareholders offering a yield of return of 12%. Using the financial data provided and calculating the weighted average cost of capital and the Net Present Value, a WACC of 10% and a NPV of €2.051 million were the results, proving the worthiness of the investment into the joint venture. Before signing any agreements further research needs to be taken to evaluate non-financial aspects such as opportunity
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SOLUTIONS TO QUESTIONS AND PROBLEMS 1. P.V. Ltd. Income Statement for Year 2 Accretion of discount (10% × 286.36) $28.64 P.V. Ltd. Balance Sheet As at Time 2 Financial Asset Cash $315.00 Shareholders’ Equity Opening balance Net income Capital Asset Present value 0.00 $315.00 $315.00 $286.36 28.64 Note that cash includes interest at 10% on opening cash balance of $150. 2. Suppose that P.V. Ltd. paid a dividend of $10 at the end of year 1 (any portion of year 1 net income would do). Then, its year
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