Cost Accounting, Developing a Cash Budget, or Using Net Present Value in Decision-Making - Coursework Example

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The paper "Cost Accounting, Developing a Cash Budget, or Using Net Present Value in Decision-Making" discusses that the techniques in managerial accounting help our decision-makers where to allocate our resources where it could generate the utmost value and revenue for the company…

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Cost Accounting, Developing a Cash Budget, or Using Net Present Value in Decision-Making

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Subject: Finance & Accounting
Type: Coursework
Level: Undergraduate
Pages: 1 (250 words)
Downloads: 2
Author: tpollich

Extract of sample "Cost Accounting, Developing a Cash Budget, or Using Net Present Value in Decision-Making"

Cost accounting also helps our company to identify essential costs which are necessary for creating value and profit for the company. Through this technique, our company are able to identify costs which are not necessary or not justifiable and enables our company to do something about this thereby improving our financial by reducing unwanted cost. For example, one department cost a lot to operate so our company decided just to outsource the operation because it is cheaper to do so.

Our company’s financial statements are able to identify profit centers and helps our top managers to direct the company’s resources to maintain and bolster our revenue. Thus, in developing cash budgets and capital expenditures, the resources that the company I work for allocates is justifiable with the value and revenue it generates for the organization.

In sum, the techniques in managerial accounting enable the decision-makers in my company to reduce cost by identifying operations and activities whose cost are unjustifiable thereby making our operations more efficient. Read More

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