Accounting for decision making Contents Contents 2 Introduction 3 Effectiveness of Traditional and Activity Based costing system 7 Effectiveness of Traditional Based costing system 7 Effectiveness of Activity Based Costing 10 Conclusion 13 References 14 Introduction Costing systems are types of information systems which require a particular type of information like the number of units produced and the number of direct labour hours of value that are involved in the process. These data are put as input into the costing system and the specific methodology of the costing system is used to produce information like the cost of the product and other important information as the output. The same da
A foreign exchange derivative can be defined as any financial derivative (financial contracts which derive their values from the performances of other entities i.e., index, assets, or interest rates that are in other words called the underlying), whose payoffs fundamentally depend on the foreign exchange rates of two or several currencies of different geographical regions or countries.
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The is also no doubt about the importance of sufficient management of finance in such organizations. Large manufacturing and supply chain companies require drivers of value like requirements development, demand management, purchase volume aggregation, management of financial information, and the management of finance, amongst others.
Off-balance sheet arrangement have long been the main concern of all accounting regulators and the economic consequences related to these items have prompted these regulators around the globe to think of developing standards that increases transparency in the financial reporting.
It denotes the combination of equity and debt finance utilised by a corporate entity to finance its assets. While some companies are unlevered, others can be financed partially thorough equity and partially through debt. The determination of the ratio between equity and debt finance is known as the financing decision.
One cannot ignore the fact that numerous factors such as social, economic and legal differences account for different standards that are vary across nations. However, there is a strong push towards a uniformed system of accounting methods in order to facilitate transactions and comparability of financial statement.
Foremost among these problems are the ones involved in communications. When a certain ethnic businessman tries to put up his business, he usually faces difficulties of surmounting the language and cultural barriers. These 2 factors are the top reasons that hinder ethnic entrepreneurship although there are other factors as well that contribute to a high rate of failure such as the high level of competition.
This is reflected in the space where country music is played, as well as the architecture and design of the country music club. When looking at this genre, it can be seen that the use of space is in direct correlation to the cultural aspects of country music and how this is related to the identity of those who are interested in the genre.
Companies go global for greener pastures and sustained growth. That works as a cushion particularly, when domestic markets are in a grip of recession. It is a fact that that the operations of the companies are becoming increasingly international in nature.
Entertainment is a key area which has been targeted by several leading companies; apple is a classic example of one such company. Ipods have become a daily necessity for several people, Ipads have been selling like hot cakes and there are others products that are being manufactured by Apple which are doing reasonably well in the market.
Now, IST is supposed to raise capital worth $500 million in order to build a fresh production facility. In the occurrence of a financial distress, the company would experience a great loss of both consumers as well as engineering talents. If IST takes a debt of $500 million, the managers of the company are afraid that the present value of the cost of financial distress would be more than the tax benefits by an amount of $20 million.
Each party agrees to pay fixed or floating interest rate denominated in a particular currency to the other party. The interest rate is multiplied by the principal amount to obtain the amount of cash flow to be exchanged. Interest rate swaps are concerned with interests payment streams only on designated notional amounts on regular basis.
There is of course a reason why the non-financial sector in the U.S. is still holding that much cash. It is their reaction from the recent economic crisis which induced the non-financial companies’ propensity to save rather to to reinvest and spend. Also, one of the major reason why these non-financial companies are not investing that money to create jobs is because they are still doubtful about the strength of the recent economic recovery of whether it can be sustained.
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As the paper outlines, the income statement, statement of financial position and the cash flow statements are the three statements that are most needed by the users of the financial information. The seven users of financial statements are present and potential investors, employees, lenders, creditors and suppliers, government authorities, public, management, and customers.
The need can be of any kind, it can be a car purchase or a car lease & it may also be a big purchase like house or some other fixed asset. The option can be any financial instrument used to buy or sell something according to a set of rules & obligation defined earlier.
It is a framework for merging various measures derived from strategy. This method takes into account the past performance while setting the drivers for future financial performance. The drivers are identified as customer, internal business process, and learning & growth perspectives, and are developed from the company’s strategy translated into objectives and measures.
Contingent liability is the present obligation in respect of past event the settlement requiring outflows of resources. Similarly, contingent asset also arises due to past events which are expected as an inflow of economic resources to the entity.
The main aim of this memo is to show the result of the expenses and revenue recognition for Metropolitan environment service. The metropolitan provides cleaning services to his customers through collection, consolidation, treating and disposing off of the waste and hazardous waste materials.
Investing in portfolios has two advantages. First of all, it reduces the investor’s risk and secondly it improves the returns that the investor can earn. Therefore, many large investors and investment banks invest in portfolios or in a basket of investment rather than investing in one type of security or company.
Contents The Garden Place 2 T A/Cs 2 INCOME STATEMENT 4 Balance Sheet 5 VERTICAL ANALYSIS 6 COMPANY A 6 BALANCE SHEET 6 COMPANY A 7 INCOME STATEMENT 7 VERTICAL ANALYSIS 7 COMPANY A - CASH FLOW STATEMENT 8 VERTICAL ANALYSIS 8 COMPANY B 9 BALANCE SHEET 9 VERTICAL ANALYSIS 9 COMPANY B 11 INCOME STATEMENT 11 VERTICAL ANALYSIS 11 COMPANY B 12 CASH FLOW STATEMENT 12 VERTICAL ANALYSIS 12 COMPANY A 15 INCOME STATEMENT 15 COMPANY A- HORIZONTAL ANALYSIS- CASH FLOW STATEMENT 16 Evaluation of Company A and B: 17 Bibliography 18 The Garden Place T A/Cs Cash A/c Apr1 2011 Common stock 60,000 Truck 2000 Apr1 2011 Loan 32000 Display Equipment 6000 Apr1 2011 Sales 340000 Rototiller 400 Cash Register 3600 Inve
The law aims to restore and establish investor’s confidence over the information received and disclosures made by the public companies. The Act further put strict regulatory measures for the auditors, regulators, accountants, attorneys and directors and increases the standards of accountability.
Relevance and reliability are the two qualities that distinguish better or more useful information from inferior or less useful information. The main objective accounting policies and standards is to produce fair valued accounting information that is reliable and relevant to the purpose of the financial statements.
This nation has long continuous history and analysts consider it as the largest democratic state in the world and particularly the most successful within the Asian continent (Saleem 42). It is a developing country and it recently opened its boundaries and its economy to international trade and influences.
For a long time, accountants in various countries around the world have deemed it necessary to bridge the gap between different aspects of accounting; this can only be achieved through harmonization of the different accounting standards around the world. Despite this, there are still some variants of accounting practices that are very independent and strong, and therefore they act as obstacles to harmonization.
The following is the interview schedule that was used to guide the interview. Name of Interviewee: David Smith Occupation: Accountant Company: Barclays Bank Date: 4-12-2012 Location: Interviewees office at Barclays Bank Offices. 1. How did you end up being an accountant?
To remain competitive in the global business arena which is characterized by e-commerce and globalization, firm have been compelled to adopt new survival techniques. Mergers and takeovers has been one of the recent approaches in the industry. Popularly referred to as A&T, mergers and takeovers have become the most reasoned and strategic procedure in business with special consideration given to the ethical consequences and financial obligations of the affected parties.
2. Employment and management of these funds in the business. This involves decisions pertaining to investment or divestment or distribution of funds of the organization. (ii) The main focus of a financial strategy is related to the financial element of the strategic planning and decision making by companies.
As a result, a number of business models that these companies mold their functions around have popped up into being and it is via these frameworks that businesses conduct their operations. A business model can be described as the rationale that an organization utilizes to achieve the objectives that they have set out in the beginning of the business and can be considered to be an essential part of the business strategy that a company uses in order to obtain success (Spencer, 2000).
Sometimes the owner of a company who holds most of the shares of a company sells his holdings in the market to raise money for himself by making an offer for sale of shares this is also referred to as initial; public offering (Geddes, 2003, p.1). Initial Public Offering is characterized by information asymmetric which means that the buyer and the sellers have different levels of information in hand.
ocial supply: 17 2.4.3.Mechanism of achieving and refraining social equilibrium: 19 2.5.IMPORTANCE AND ROLE OF CSR IN ORGANIZATIONAL REPUTATION 19 2.6.CORPORATE SOCIAL RESPONSIBILITY AS A COMPETITIVE ADVANTAGE: 20 2.7.CORPORATE SOCIAL RESPONSIBILITY’S IMPACT ON PROFITABILITY: 20 2.8.WAYS TO GENERATE PROFITABLE BY BUILDING REPUTATION THROUGH CSR ACTIVITIES 24 2.9.ECONOMICS PERSPECTIVE OF CORPORATE SOCIAL RESPONSIBILITY AND ORGANIZATIONAL REPUTATION PROFITABILITY OF FIRM 26 2.9.1.Motivational Factors: 27 2.10.ROLE OF CSR IN BUILDING REPUTATION AND PROFITS IN CONTEMPORARY WORLD 28 2.11.SUMMARY 30 Chapter 3: RESEARCH METHODOLOGY 31 3.1.INTRODUCTION 31 3.2.RESEARCH OBJECTIVES 31 3.3.RESEARCH PUR
Due to globalization, most of the multinational companies are converging towards the IFRS, leaving the traditional GAAP framework of accounting used in the United States. Differences in the measurements of Goodwill Impairment with GAAP & IFRS The assistance for accounting of impairment of goodwill is analogous to GAAP and IFRS.
ACC 410 A, B, and C, often referred to as intermediate accounting, cover a notable portion of the Generally Accepted Accounting Standards (GAAP). ACC 410 A particularly gives a good understanding of “the accounting process, the principal financial statements, accounting concepts, theory and application of the time value of money, and accounting for cash, receivables, and inventories” (Chegg).
The company has been expanding by leaps and bounds during the past decade and its operational and financial outlook looks amazing. In August 2004, the company made its Initial Public offering (IPO) and officially got listed on the NASDAQ index. The paper presents an analysis regarding whether the shares issued were at premium or below the rightful price.
Amazon Inc. has its future well focuses through quantified strategic objectives. To make it more competitive in future, plans for acquisitions have been laid down. Amazon Inc. hopes to up its game and venture into chains like Staples. This will be met by tough competition from firms like CPG.
However, it is not always that this aim is achieved. This is because there have been occasions where the attempt to deliver high quality service to patients have been characterized by a number of errors and mistakes made by the medical experts. Due to the complexity of the use of drug and other health outputs, the consequences of such medical errors have always been very fatal and economically disadvantageous.
to our latest meeting, I have immense pleasure here in to enclose a report that will form the basis of your financial planning. The report aims to analyse your current state of affairs and then based on that the report will construct relevant immediate and long term financial objectives.
This paper looks into the formation of the central bank of GCC. Central Bank of GCC is yet to be formed officially, even though member countries have already met to discuss its structure, functions, and the qualifications of its membership.
It has been argued by IASB that for small and medium scale enterprises, a global financial reporting standard is required, since the advantages of internationally comparable accounting standards are not only limited to the large businesses, where the equity and the debt instruments are traded in capital markets.
Since the budget is just an estimate of what management wishes to achieve within a specific period, the organization does not always attain the targets specified in the budget (Sherman, 2011, p. 76). The organization usually fails to achieve this target because there is no certainty of future occurrences.
The researcher of this essay aims to pay special attention to the factors affecting the BHP Billiton Company. The company has international operations indicating that foreign currency exchange rate movements affect its returns; however it can effectively shield itself against foreign currency risk by trading all the currencies of the countries it operates in.
It has been suggested, that financial market development results into lower transaction costs for sending remittances besides can also improve the competition between the institutions involved in international money transfer and other related services. It also improves the process of financial market development within any country or region.
It presents a comprehensive method of evaluation and measurement of leadership in organisations. A justification for using the method is also provided. The project also provides an academic literature on the effectiveness of measurement of leadership in organisations.
Equally important, the assessment of students experiences, remains with them for a lifetime and significantly affect their capability for future learning (Weeden, Winter et al.). The following is a variation of a model available on (, RCN: Home) to facilitate reflection.
This includes critical discussion on the relevance of accounting profit as a performance measure in an organization.The financial analysis of two companies would be based on the CORE framework. Sainsbury Plc is a company listed in London Stock Exchange and is engaged in primarily the retailing business.
Reflections upon the impact of Lord Liverpool’s support of the Corn Laws of 1815 on the support for the Conservative Party.
The corn laws of 1815 were controversial, in their own time as well as when seen through the lenses of later historians. Agriculturalists then regarded them as not offering enough protection, thus endangering British agriculture in the long run and were therefore opposed.
............................................................. Date...................................... Abstract Self – immolation is one which is often underestimated, specifically when relating honor violence to the UK. Honor violence relates to violence, specifically with homes, which occurs as a result of cultural affiliations with justifying the violence.
It is a security issued to the public as a source of funds to the government or firms. If bonds are issued by the government, then the funds realized are used in provision of public goods. But the most important reason why governments issue bonds is to use the funds to carry out the fiscal policies in case the economy is in any kind of a macroeconomic problem.
I am going to give an in-depth analysis of accounting. Primary objectives of accounting In a business setup, recording and summarizing financial transaction after ensuring their validity is usually conducted in determining the overall progress of the of the business setup.
The purposeof the report, ratio analysis is conducted for five years. To conduct a financial analysis, the first step is to review the profits that the firm has earned. For this, we take into consideration 5 years to be analyzed, which are 2011, 2010, 2009, 2008 and 2007 data reports. Ratio analyses are simply used in accounting.