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Limitations of Budgeting
1. Too mush reliance may reason resistance or inflexibility to change.
2. Difficult to set levels of attainment. It may result into too tight budgets that reasons loss of morale.
3. Antagonism whereas budgets exert undue pressure.
4. Budgeting control is a terminate exercise and hence any type of report from investigation of variances may be of little employ to the current operations.
Zero Based Budgeting It is referred to also like priority based budgeting. It is a cost advantage approach budgeting where it is assumed that the cost allowance is Zero for a
Controllable and Non Controllable Costs Controllable costs can be influenced on the level of authority at that they are being analyzed when non-controllable costs cannot.
Requirements of Uniform Costing 1. Uniform costing systems must process the given features as: 2. Cost reports and statements should be organized and laid out in a same for
Banana Corporation had the following transactions relating to a patent: January 1, 2010: Purchased patent for $2,000,000. The patent had fifteen years remainnig although Banan
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: selling price $140 units in begining in
Value one stock using the dividend discount model of stock valuation with two periods of constant growth (not the simple one period growth model). See chapter 18 of the textbook
Motivation - Behavioural Aspects of Standards Variance analysis and standards setting requires to be carried out like it motivates managers and other employees. It should not
Q. Show the Break-even charts? Refers graphically profit and losses at different levels of sales volume achieved. When sales revenue is greater than total cost it m
Explain:- Q Why is the statement of cash flows useful? Q. How is it possible for a company to suffer a net loss for a given year, yet produce a positive net cash flow from opera
Matheson Electronics' Canadian Branch will help introduce into Canada the just developed new electronic device which, when mounted on an automobile, will tell the driver how many m
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