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Explain performance budgeting according to seal and summers
According to seal and summers performance budgeting comprises three elements:
a) The result (final outcome)
b) The strategy (different ways to achieve the final outcome)
c) Activity/outputs (what is actually done to achieving the final outcome)
Adjacent extreme points differ in only one variable The first observation indicates that we can identify the extreme points of the solution space algebraically by setting zero as
limitation
underlying assumptions of breakeven analysis and the limitations of this.
Critique of Performance Measurement This section brings together material from preceding data in this lesson in order to provide a critical appraisal of performance measurement
Advantages of ratio analysis 1) Helpful in financial analysis: financial analysis is easier if accounting ratios are used to analyze the different financial statement relatio
LIMITATIONS OF ABC ANALYSIS However ABC analysis is a basic tool for exercising selective control over many inventory items, it does not, in its current form, allow precise con
Private sector companies have multiple stakeholders who are likely to have divergent interests.( five stakeholder groups and discuss their financial and other objectives).
definition and illustrations
How do you compare two companies operating leverage? Must the sales volume be set the same or the net operating income?
Determine the Scope and areas of cost reduction Scope and areas of cost reduction the scope of cost reduction is so wide that it is not practicable to develop fully the areas i
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