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In this method, approximation of various assets here excluding cash and including liabilities are made getting into consideration the transactions in the ensuring period. Afterward, a balance sheet is prepared that depends on these forecasts. Liabilities and Assets are termed as 'Projected balance sheet'. The dissimilarity between liabilities and assets of this balance sheet is termed as shortage or surplus cash of such period. If the net liability is more than net assets, this represents excess cash that is not needed by the firm. The management may plan for such investment. Conversely, if total assets are more than net liabilities, so it shows the deficiency of working capital that is to be arranged through the management either from bank overdraft or by the other sources.
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
Explain the Break-Even Analysis The study of cost volume profit analysis is often referred to as break-even analysis and the two terms are used interchangeably by many. This i
in the past,the company had difficulties separating semi-variable costs between varible and fixed costs.the company''s varible cost per unit consists of the cost of patrol,maintena
How do you compare two companies operating leverage? Must the sales volume be set the same or the net operating income?
Explain Management accounting Meaning & definition: Management accounting is comprises of two words, Management and accounting. It is the study of managerial aspect of the ac
What are the Advantages or uses of break even charts Computation of break even point or presentation of cost volume and profit relationship by way of break even charts has the
Open Account Credit sales are usually on open account that implies which the seller ships the goods to the buyer and afterward sends the bill invoice. Consignment In th
Going rate or follow the crowd pricing:- In this method the firm price its products at the similar level as that of the competition. This method supposes that there will be no
I need an example on how to solve a single and two product bundle
I am part of a marketing group, and we are working on a project for a local cable company,they currently serve 3,200 customers and sell 50 wireless boxes a month,what I need to do
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