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This is a growing market as evident from the fact that £ 85 billion is spent annually on UK tourism, especially London. About 50 % of this is by overseas visitors and the rest are by UK residents in day trips and staying away from home (UK-Culture, 2007). The book will be marketed to both the tourists and business visitors alike, as business tourism is also becoming increasingly common. In 2005, business tourism accounted to about 8 million visits to London (UK-Culture, 2007).
The shareholders of the company will invest £ 5,000 for the company. Another £ 30,000 will be taken as a long term loan from the family with instalment payments starting from the third year with a standard rate of 0 % and in a period of 9 years. A loan of £ 25,000 from NatWest bank will be availed at an interest rate of 6.4 % APR.
The estimated sales for the initial year of operations are about 6,173 units. This amounts to an average sale of 515 units per month in the first year. The tourist industry in London is always active and the company estimates to sell all of the 515 units produced in the month irrespective of the season. The sales volume is presented in Appendix 2.
The cash for the sales made in the month are collected within the end of the month (i.e., within a maximum period of 30 days). This way, the company will be able to maintain effective liquidity. The suppliers will be paid in two instalments, 50 % on purchase date and the remaining 50 % after 30 days.
The books will be made based on a just in time strategy, thus reducing the inventory to zero. This will enable the company to effectively safe on storage costs as well. A total of 6,173 units will be sold in the first year and there will not be any closing stock in the monthly budget, as all the 525 units manufactured in the month will be sold. The initial inventory will be zero at start
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……………………………………………...6 References…………………………………………………………………………………………7 Introduction British Airways plc (BA) is one of the largest airlines worldwide and is considered as the national carrier of the United Kingdom based on its large fleet, international flights and destinations.
This contingency management depends on the manager’s personal leadership style. It also relies upon the talent and behaviours of the regular employees. The contingency theory is a line of thinking that there is no one ideal way of leadership. It also contends that certain leadership styles may be effective in some situations, but not so in others.
Since the director’s of companies cannot execute their company’s strategies on their own, they have to rely on people and thus create an organization structure that allows decentralization of management responsibilities. According to Hoskin & Macve (1990, pg.
Management accounting emphasizes on decision making and forward looking instead of the old or historical data which the basic accounting used to emphasize. There are different methods that have emerged because of management accounting and some of these techniques are; Activity Based Costing (ABC), Grenzplankostenrechnung (GPK), Resource Consumption Accounting (RCA), etc.
This paper contains an introduction to the topic of discussion, literature review, a research methodology that was used to collect data, a section for analyzing the data, and a last section for conclusion. Table of Contents 1 1.0 Introduction 3 2.0 Literature review 4 2.1 Accounting 4 2.2 Management control/ accounting systems 5 2.3 Management accounting and decision-making 6 3.0 Research methodology 7 4.0 Analysis 8 4.1 Supporting arguments for Johnson and Kaplan’s (1987) argument 8 4.1 Arguments against the criticism issued by Johnson and Kaplan 9 5.0 Conclusion 11 References 12 1.0 Introduction The field of management has witnessed numerous transformations that are mainly attributed to
Management accounting is a branch of accounting which mainly deals with various managerial aspects. This is primarily handled by the managers within the organization, and it is an essential component in taking appropriate decisions. The concept of management accounting comes under the Management accountant who is responsible for the preparation of financial statements, and management accounting report for appropriate decision making.
"The process of identification, measurement, accumulation, analysis, preparation, interpretation and communication of financial information used by management to plan, evaluate, and control within an organization and to assure appropriate use of and accountability for its resources.
They play different roles in the process of satisfying the needs of the stakeholders of a particular organization. This essay attempts to provide a clear understanding regarding the differences that exist between the management
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