Managerial Accounting Essay

College
Essay
Miscellaneous
Pages 4 (1004 words)
Download 0
Managerial Accounting helps managers make good decisions .Managerial Accounting provides information about the cost of goods and services ,whether a product is profitable ,whether to invest in a new business venture and how to budget .It compares actual performance to planned performance and facilities and many other important decisions critical to the success of organizations "…

Introduction

These rates of return methodologies are vital in terms of the measurement of financial performance, assessment of the risk and desirability of certain projects. Also the monitoring of a certain specific project performance. There are two vital rates of return concepts. The Economic rate of return and the Accounting rate of return. Both of these rates of returns play a vital role in terms of an investment appraisal .now, to measure the economic performance of an investment; we need to be aware of its Real rate of return of the finished project. Herein all Cash receipts are expressed in terms of monetary units which hold equal purchasing power. This theory is what provides base to the following value of a future performance. The present value of the expected cash flow of the project, discounted appropriately.
Differential analysis is considered an alternative to the traditional income statement format. Pricing decisions are made using the differential analysis methodology. If organizations apply differential analysis to pricing, then every price given for a product is considered as the alternative course of action. The fixed costs however will remain the same in between .The aim of all organizations in the process of selecting an appropriate price is where total future revenues will exceed total future costs.
Dif ...
Download paper
Not exactly what you need?

Related papers

Managerial Accounting and Organizational Controls Essay
At $10.5 per pair the cost, the company will purchase the 10,000 bindings with $105,000. Adding this, we get $110,000 allocation for the bindings for the supplier so that making and outsourcing are the same. Dividing this by the annual number of pairs will yield $11 which is the ceiling price that Minnetonka can be charged for ski-bindings.…
managerial accounting
This concept states that stock is valued at lower of NRV or cost. Since NRV is not given in this case, we will include the purchase price or the cost of stock which is 750 in this case.…
MANAGERIAL AND COST ACCOUNTING
Mr. Ross used to influence people only through his teaching inside the classroom. He neither wrote an article or a book in order to influence people like most writer or professors generally do.…
supervisory management/managerial accounting
To be a successful leader, one should have multifarious attributes such as social skill, emotional stability, intelligence, technical competence and so on and so forth.…
Managerial Accounting Essay
These rates of return methodologies are vital in terms of the measurement of financial performance, assessment of the risk and desirability of certain projects. Also the monitoring of a certain specific project performance. There are two vital rates of return concepts. The Economic rate of return and the Accounting rate of return. Both of these rates of returns play a vital role in terms of an…
Managerial Accounting and Organizational Controls High School Essay
This is done by standard reports that are generated at regular intervals. They may be generated monthly, quarterly, or annually and adhere to standard guidelines that are accepted by the accounting industry. The reports tell the amount of business, cost of sales, debt, and assets that a company has. The reports are used by creditors, bankers, investors, and shareholders to make financial decisions…
Financial and managerial accounting Essay
a) $75,000 is a fixed cost since it does not change with the change in the number of guests. If the fee is fixed at 50% of revenue received, it would be a variable cost as it would change along with the number of guests attending the event.…