Accounting Ratios, Managerial Accounting

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Explain TWO limitations of using accounting ratios to assess the performance of a firm and suggest how each limitation may be improved

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Mgt acc., companyXYZusesthe job oder costing system.

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Stock-out costs These are the opportunity costs of running out of stock. They comprise: 1) The costs of lost customer sales, and therefore lost contribution to fixed costs.

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Explain the categories of The activity cost drivers The activity cost drivers can broadly be classified into following three categories: 1) Transaction drivers: for exampl

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Vogel's Approximation Method (VAM) This method is a heuristic and usually provides a better starting solution than the two methods described above. However, VAM generally yield

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Recommend whether marginal or absorption costing should be use for internal monthly reporting

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Full Service Recourse Factoring : In this kind of factoring the client has to bear the risk of default made through the debtors. There the factor had advanced funds against book de

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