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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.
Competition oriented pricing policy Most companies fix the price of their products after a careful consideration of the competitor's price structure. Deliberate policy may be f
Define performance budgeting according U.S. bureau of budget U.S. bureau of budget defines performance budget as one which presents purposes and objectives for which funds are
dentify and explain the many classsification of cost for planning,control,performance evaluation and decision making
This is a most familiar form of medium term financing in obtaining plant and vehicles, machinery etc. In hire purchase transactions, the purchaser of goods will obtain the possessi
Steps involved in ratio analysis The following are the four steps involved in the ratio analysis: 1) selection of relevant data from the financial statement depending upon t
Classification and computation of variances The computation and analysis of variances is the main aim of standard costing. The variance is the difference among the standard pe
Ask question #Miwhy is the activity based costing unaccepable for external financial reportnimum 100 words accepted#
Decision Making Environment There are four main environments within that decisions can be done. These are: • Certainty • Risk • Fundamental uncertainty • Compet
reasons for favourable or adverse variances i.e. prise usage, mix, yeild
Planning, Directing, and Controlling A clever sign hanging on the wall of a business establishment: "The Managers are paid to manage the work-- If There Were No Problems we wou
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