“positive accounting theory” is to “explain” and “predict” accounting practice. • “Explanation” means providing reasons for observed practice. For example, positive accounting theory seeks to explain why firms continue to use historical cost accounting and why certain firms switch between a numbers of accounting techniques. • “Prediction” of accounting practice means that the theory predicts “unobserved phenomena”. Watts and Zimmerman start their book with a fundamental statement
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and | |unexplored market segments include Off Road/Dual Purpose, Cruiser and Touring (Exhibit 5 – page 17) |speed., and preferred by many American riders. = this design will definitely not cater to European and Asian | |Ducati’s Fixed Sales Cost in 2000 is 3 times as that of HD (14.5Million vs. 5million). |customers. | |EBITDA – is a measure of a company’s cash flow before certain
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(5758637) Sohail Ahmed (5813018) Super Project Case 1. The relevant cash flows for General Foods are the following: sales and cost of goods sold for the Super project, erosion of Jell-O contribution margin, selling expenses, income tax, capital expenditures, opportunity costs for using excess agglomerator capacity, and increases in the net working capital. a. Test-market expenses, which were included in the first period, are sunk costs because they had been already expensed for feasibility of the
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investigates the relationship between quality costs and revenue sharing in supply chains. However, the relevant literature is examined as follows: 2.1 Quality Cost in Supply Chain Many firms are now increasingly adopting inter-firm contractual arrangements to achieve competitive advantage. Firms gain many benefits from such arrangements because of the changing of relationships from short-term to long-term, such benefits as increasing market share, cost reduction, improve performance, as well as gain
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schedule achievement, and safety, in addition to costs. The cost reports were changed to include only those that are controllable by each individual operating manager. Lastly, one of the most significant changes from the old system is the elimination of the Cost Above measure, therefore decreasing the cost detail in the new performance reports considerably. Although the new system intends to help the managers and increase their focus on relevant data, some are still complaining and dissatisfied
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and/or problem? The problem was taking the 9.60 litigation costs off the report at the advice of Cheryl Kelly. The advice was to instead report it at the executive meeting which Ahmed Diba was not told about. Why is it a problem? It may not be ethical to not report this to the executive committee because it could change how successful the product will be or future lawsuits. What is the timeline? 1. Report is done with litigation costs included 2. Cheryl Kelly suggest taking it out and presenting
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communicating with your customers, contacting your vendors or sharing relevant information about your business, your information must come through in an accurate and preferably winsome way. In a technologically focused business climate, technology is an important facet of your ability to communicate. There are several advantages to using technology over more traditional means of communication. True Cost of Ownership The true cost of technology to communicate when you compare it with much slower means
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The flexible budget uses the same selling price and cost assumptions as in a original budget. Variable and fixed costs do not change categories. The variable amounts are recalculated using the actual level of activity, which in the case of the income statement is sales units. The important thing to remember in preparing a flexible budget is that if an amount, cost or revenue, was variable when the original budget was prepared, that amount is still variable and will need to be recalculated when preparing
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I. Introduction In January 1991, the management of the Kansas City Works of Armco’s Midwestern implemented a new performance measurement system that was “designed to give us better management focus on the things that are most important for them to worry about, earlier warning problems and improved commitment to achieve objectives”. However, the changes top management wanted to institute and integrate into the system were met with less than favorable impressions, not excluding outright dissatisfaction
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allocated, considering the constraints, to each advertising medium in order to optimise average impact. It also helps in finding out the total and individual costs of advertisements. Layout of model (in blocks): 1) Requirements- minimum and maximum amount of ads required can be entered in this block for each advertising medium. The Cost per unit of each medium is also entered in the requirements area. 2) Resources available- This is the funds available section and would act as a constraint
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