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VALUE ADDED STATEMENTS
Are intended to show how much wealth or value has been created by the company’s operations and how the wealth has been shared out to interested groups e.g. shareholders, investors in debt capital, employees, government and the amount retained for re-investment. The value added statement exhibits:
The difference between the purchase cost of external material and services and the selling prices of the company goods and services is the value/wealth created by the company itself. This is termed to as value added. Value added statements can provide additional information to senior managers to help them in comparing performance of different divisions.
Mosman Ltd makes a single product. The projected sales for the first month of the coming year and the starting and ending inventory data are as follows: Sales 80,000 units Uni
tha accountant''s approach to CVP ANALYSIS HAS BEEN CRITICISED IN THATIT DOES NOT DEAL WITH THE FOLLOWING; CHANGES IN PRODUCT MIX. WHY IS IT SO?
Working capital is a necessary requirement for any type of business activity. Banks in India nowadays constitute the main suppliers of working capital credit to any type of busines
Vogel's Approximation Method (VAM) This method is a heuristic and usually provides a better starting solution than the two methods described above. However, VAM generally yield
advantage and disadvantage of incremental budget
The Ragan Corporation uses a process cost system. The company started March with 2,300 units in Work in Process-Dept. A. During the month 4,000 units were started. At the end of th
Creditors turnover ratio ( or payables turnover ratio) Meaning: this ratio establishes a relation ship between net credit purchases and average trade creditors. Objective
briefly discuss five characteristics of relevant cost
Activity Based Costing (ABC) differs from Absorption Costing (AC) in the manner in which overheads are charged to units. ABC charges overheads to units based on their proportion
When to order-Material control If deliveries from suppliers normally take two weeks to arrive, then replenishment orders should be placed with them when the level of stocks rep
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