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Incremental budgeting
This is used to describe an incremental cost approach to budgeting where the next period budget is based on the current year’s results plus an extra amount (an increment) for estimated growth or inflation next period.
Incremental budgeting is sufficient only if current operations are effective, efficient and economical without an alternative course of action available to the organization. Although incremental budgeting is easy to prepare, it encourages slacks and wasteful spending to creep into budgets and become a normal feature of actual spending. It does not encourage performance to be improved or looking for alternative ways of carrying out the production.
INVENTORY PLANNING AND CONTROL The main goal of "inventory control" is to discover and maintain the optimum level of investment in all types of inventories, from raw materials
LEARNING CURVE THEORY The first time a new operation is performed both workers and operating procedures are untried but as the operation is replaced the workers becomes more fa
Do you think the food industry in general has equivocated on food labeling? Are all foods labeled natural in the same way? Has modern society subverted the concept of nature?
What are the Disadvantages of budgetary control 1) Uncertain future: the budgets are prepared for the future period. Despite best estimates made for the predictions may not
C-V-P ANALYSIS – MULTIPLE PRODUCTS The simple product CVP analysis can be extended to handle the more realistic situations where the firm produces more than one product. The o
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tell me how go about charging for your services
Explain the External factors of pricing decisions 1) Demand: the market demand for a product or service obviously has big impact on pricing. Since demand is affected by fact
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The Value Chain and Cost Analysis The behavior of a firm's costs and its relative cost position stem from the value activities the firm performs in competing in an industry. A me
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