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Organizing(1) It is the establishment of the framework within which the required activities are to be performed and the designation of who should perform such activities. It includes the establishment of decision units such as departments, sections, branches, etc.
(2) The management accountant will give information on the performance of each of these segments.
Motivation
Motivation involves influencing human behavior so that the participants identify with the objectives of the organization and makes decisions that are in harmony with such objectives. Budgets and performance reports produced by management accountants motivate the firm’s employees. To be motivating however, targets should be challenging but achievable.
The Rohr Company’s old equipment for making subassemblies is worn out. The company is considering two courses of action: (a) Completely replacing the old equipment with new equipme
Constructing the Model Steps: 1) Identify the objectives of the simulation (A detailed listing of the results expected will help to clarify the output variables. 2) R
The case of variable quantity discounts In practice, suppliers may offer different discounts for different quantities purchased. For illustration: Segment Quantity
identify and explain the many classification of costs for planning, control,performance evaluation and decision making.
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
Determine the Distribution cost and Research cost Distribution cost: The cost of sequence of the operations which begin with making the packed product available for dispa
Definition of accounting Accounting is the procedure of recognizing measuring and communicating economic information to allow informed judgments and decisions by the user’s inf
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
Testing the Slope The strong point of the relationship among the dependent variable and each of the independent variables can be determined using 3 methods: 1) Correlation
Correlation coefficient (r) Correlation coefficient measures the degree of association between two variables such as the cost and the activity level. r = nΣxy - Σx Σy
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