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Explain Programmer budgeting According to burkhead
According to burkhead a program budget serves a different purpose than performance budget. A performance budget is useful for review and decision marking at and above the department level. It is adopted to the requirement of overall budgetary planning."
Thus program budgeting implies the following:
Analysis of information for identifying and selecting long term objectives
Determine the program to attain the objectives
Cost benefit analysis
Selecting long term investment projects
Specifying the programs and activities
Finally allocating the resources
ARR gives a fast estimate of a project's value over its useful life. ARR is derived by determining profits before taxes and interest. ARR is an accounting technique used fo
Transfer Pricing Transfer pricing can contribute directly to the process of departmental performance measurement and indirectly to the measurement of product performance. A
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
Disadvantages of zero base budgeting 1) It is not suitable for all the activities in an organization 2) It has limited application in a profit making organization. In this c
Stages in activity based costing The different stages in activity based costing are listed below and are shown in figure below. 1) Identification of the activities that may
The standard cost of chemical mixture ~ PQ’ is as follows: 40% of material P @ Rs. 400 per kg. 60% of material Q @ Rs. 600 per kg. A standard loss of 10% is normally anticipated in
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Explain product cost Product costs are those costs which are associated with and directly identifiable with the product. In other words, which are assigned to the product are p
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