Managerial accounting process provides financial as well as non-financial information to the managers and other internal decision makers of an organization. In other words, it ensures effective planning and controlling of operations thereby supporting the decision making process. Planning of operations primarily involves the budgeting process. It is associated with the cost of producing a unit of product. Thereafter, the actual performance of the firm is compared along with the budgeted amounts and controlling occurs in those sectors where the difference seems to be significant (CSN, 2011). Simultaneously, along with the development of managerial accounting principles the traditional accounting system also witnessed a rapid development. However, there are good numbers of firms which are still following the traditional accounting system. But with the increasing global competition and evolution of technologies, production oriented operations are becoming more and more complex. Firms need to do an effective evaluation of the cost that they incur for producing goods, so that proper pricing of those goods can be done, which will generate sufficient revenues for the company. Precise cost information is very crucial for every aspect of business, be it pricing policies, product designs or performance reviews. These requirements saw the inception of activity based accounting over two decades ago and now is widely used in US, Europe and Pacific. Similar to managerial accounting, activity based costing not only includes the evaluation of a company from financial perspective, but also from the wholesome perspective as it includes both financial and non-financial data in its reporting (Gupta & Galloway, 2003). The following section will involve a thorough analysis of the managerial accounting process followed in General electric Inc thereby explaining the significance of Activity based costing towards the financial performance of the company. Moreover, comments will be made as to whether the usage of activity based costing system will add to the benefits of the company or not. Thereafter, emphasis will be laid on the usage of standard costing by General Electric (GE). Standard costing is basically used by companies for comparing standard cost set by the company with the actual cost that is incurred. Hence it draws attention to performance of the company with respect to the goal that is set by the company. The project seeks to find the benefits that are obtained from using the standard costing system as the part of the costing system if GE employs it. The fifth part of the project enlightens the benefits of the relevant cost for the future projects of the company. It helps the management of the company to take any crucial decision regarding the acceptance of the project or take make or buy decision. The data required for the purpose of analysis will be retrieved from the company website as well as from yahoo finance. In addition to that journal articles related to the topic of discussion will be used as the basis of ground work for the purpose of evaluation. Section II General Electric General Electric Company,
The managerial accounting process in general electric inc. Name of the Student: Name of the University: Date: Table of Contents Section I 3 Section II 4 General Electric 4 Section III 7 Activity based costing 7 Section IV 9 Standard Cost 9 Standard Costing 9 Establishments of Standard cost 10 Benefits of Standard Costing in General Electric 11 Section V 13 Benefits of Relevant cost 13 Section VI 14 Conclusion 14 Section I Managerial accounting practices have undergone a drastic change over the last few decades…
General Electric (GE) is an established company in the field of services, technology, and manufacturing. The company operates in more than 100 countries and has 313,000 employees worldwide. The company owes its origin to the inventions of Thomas A. Edison. Edison established Edison Electric Light Company in the year 1878.
The research paper in this accord endeavours to understand the level of ethical practices enabled in the business organisation to help achieve both business and social ends. The company is found to largely encourage the practice of business ethics to help create a motivated environment for the workers to better perform.
In studying the various aspects and the strategies of the organization the pros and cons have been highlighted and respective suggestions have been provided have a clear understanding of the managerial economics point of view. The paper also focuses on the agency problem of the organization to point out the limitation in the strategy of the organization.
The relationship between the owner’s (Kim) husband and the audit manager Pete is going to influence the disclosure and materiality of the audit contents.The fact that there is a relationship between the bank the loan is being sort and Alan, Kim’s Husband depicts a loan relationship.
The advantage of hiring contract workers is that their wages can be determined by the management and they are pegged at a certain level, and they do not impact the operations of the organization. Therefore, it has been recommended that ten more contract workers should be hired in order to help the company to cope with the rising demand of bricks.
Transportation, within the past 200 years has come to be fundamentally redefined. From the era of steam power, fossil fuels, namely petroleum products, have become the means by which a very high percentage of human locomotion currently takes place. As such, the greatest issue with reliance upon fossil fuels, beyond the environmental impacts that they have been proven to have is with regards to the fact that there is only a finite amount of these fuels available to humans.
Thus, he must first identify his target market. From there, he must engage himself in advertising and other marketing strategies to gain the upper hand in the capture of a big slice of the market share. But this cannot be maintained if he doesn't master the art of customer satisfaction, which had been researched and continued to be researched.
The world oil markets have experienced significant fluctuations within the past year, with the demand being reduced by a weak world economy and increased after the natural disasters in Japan and India. It is anticipated that global oil demand growth will remain stable in 2014.
In 1996, Apple Inc. acquired the NeXT Company, whose operating system became the next-generation OS of Apple. A year later the company was trapped in a financially-burdensome position, and Steve Jobs has been appointed as the interim Chief Executive Officer. Under
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