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Identification of decision packages - Zero base budgeting
Each manager should break down his decision unit into smaller decision packages. Top manager may lay down the minimum organizational level for developing decision packages. A decision package has been defined as a document that distinctly identifies a function operation or an activity. A decision package will be evolved with reference to particular circumstances. A decision packages should have following elements:
Basic identification of data, i.e., the economic benefits of attempting the program and risk involved in description of programmer goal.
Feasibility assessment i.e., the economic benefits of attempting the programs and risk involved in discarding the programmer
Alternative coursed of action for attempting the programmer
A decision unit may also specify intangible benefits i.e., benefits which cannot be identified
what are the different arguments against direct materials, direct labor, and factory overhead
Transfer pricing with third party consequences Transfer prices are used not only for internal record keeping and performance evaluation purposes. There are several settings
Accounts Payable Turnover Ratio is a short-term liquidity measure which is used to calculate the rate at which a company pays off its suppliers. Accounts payable turnover ratio is
JOINT PRODUCT DECISIONS When a manufacturing Company carries out a process operation in which 2 or more joint products are made from a common process a number of decision troub
Budget Preparation The organization's budget is ready following the acceptance and sanction of the decision packages. Once the budget of organization has been accepted manager
QUESTION 1: P A RT A You are the Cost Accountant of an industrial concern and have been assigned the duty of preparing a cost accounting system. Initially it has been de
Explain Direct labor cost standard The setting up of standard labor cost for each product would require: a) The determination of budgeted fixed overhead for a period b) B
How to write introduction on strategy plan
Once the cash budget has been arranged and suitable net cash flows established the finance manager must ensure that there does not exists an important deviation in between actual a
Activity Based costing and Functional Based Costing compare them together in terms of efficiency, advantages, disadvantages and accuracy.
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