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Recognition of the Organization's Decision Units and Decision Packages
ZBB decision unit is an operating division for which decision packages are generated and analyzed. It can also be explained as a cost or a budget center. Managers of each decision unit are answerable for developing an explanation of each program to be operated in the next fiscal year or years. In ZBB such programs are termed to as decision packages and each decision package generally will have three or more alternative ways of attaining the decision package's objectives. Shortly, each decision package alternative should contain, as a minimum, goals and/or purposes, resources, activities, and their dollar costs. Also, the decision package must contain an explanation of how it contributes to the mission and aims of the organization.
Assumptions Underlying the CVP Analysis CVP analysis as discussed above is based on certain assumptions . if these assumptions are not recognized then serious error may result
Traditional budgeting vs. zero base budgeting 1) Traditional budgeting is accounting oriented. Main stress happens to be on previous level of expenditure. Zero base budgeting m
Gardner Manufacturing Company produces a product that sells for $120. A selling commission of 10% of the selling price is paid on each unit sold. Variable manufacturing costs are $
Disadvantages of incremental budgeting a) Incremental budgeting suppose activities and method of working will continue in the same way b) No incentive for developing their d
what is a base of managerial accounting
INVENTORY CONTROL The activities of a business during a financial year combine investment projects in progress with new projects commencing and others terminate within the year
Case Study Labor standards Geeta & Company has experienced increased production costs. The primary area of concern identified by management is direct labor. The compa
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
Marginal cost or incremental cost pricing method: Here the company may work on the premise of recovering its marginal cost and getting a contribution towards its overheads. Thi
question:lease accounting implicit rate unknown,20%incremental rate leaseterm 4 years,find implicit rate using trial and error method.i know nothing about trial and error method in
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