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Unit - Advanced Management Accounting
LO2 Evaluate the use of management accounting techniques to support organizational performance
Microeconomic techniques: These would include cost analysis, cost-volume-profit, flexible budgeting, and cost variances. Also, consider absorption and marginal costing.
Cost allocation: Considering the theoretical aspects as well as how this is applied in practice.
Capital and capital budgeting: The meaning behind these terms will be discussed, their importance, and their use. Techniques include Net Present Value (NPV), Internal Rate of Return (IRR), Discounted Cash Flow (DCF), and payback periods.
Question:
P2 Evaluate the use of different management accounting techniques in application to supporting organizational performance.
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Auburn refused to deliver the molds unless CBS paid the additional charge for engineering services. CBS claimed that the contract did not provide for a withdrawal charge. Who will prevail? Why?
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