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When the customers of the company are spread over broad geographical areas then in place of a particular collection centre the company opens collection centres at the regional stage. The customers are instructed to remit payments to their exact regional centres. These regional centres will open bank accounts along with the branches of banks where this has collection potential. These branches will electronically or telegraphically transfer the collected amount to the Head Office bank account. Such system accelerates cash inflows.
Cost Behavior A firm's cost position results from the cost behavior of its value activities. The cost behavior is based on a number of structural factors which influence cost
So as to makes sure that the receivables are collected in occupied and on due date by the customers, prior information of their credit worthiness must be obtainable. This informati
What Procedure are followed in kaizen costing In brief kaizen costing involves setting a new cost reduction target every month. The difference between the target profits and th
Applications of Markov Chains They are a particular class of probabilistic models and their applications include analysis of: Inventory systems Replacement and mainten
Determine the cost according to normality According to normality: under this category cost may be categorized as follows: Normal cost: it is the cost which is normally i
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How can we draw a break even chart Under this method the variable cost line is drawn first and then fixed cost line is drawn over and parallel to the variable cost line. The fi
Question 1: (a) Discuss the main features and problems which Mauritius has to face as a small island developing country. (b) What are the factors which have led to the f
hi how do we find a schedule of expected cash collections
critically examine the current cost accounting for price level changes
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