StudentShare solutions
Triangle menu

Should Companies be required to forecast accounting data - Essay Example

Nobody downloaded yet

Extract of sample
Should Companies be required to forecast accounting data

(basic raw material) plus an oven to bake the cookies (plant and machinery), and also a place to keep the oven (premises). Plus, not to forget, skilled labor (You’ve got to know how to make cookies OR hire someone who can.). Last but not the least, your have to find a way to sell the cookies – either hire a salesman with a fixed pay or hire an agent with a fixed share in profits (Selling and distribution overhead). All these factors would sum up to be the ‘Cost’ incurred on making the cookies. Based on this cost, you may decide your expected ‘Selling Price’ and thus the ‘Contribution’ per unit. (Activity Ratios)
Also, to keep things going, you would need enough money readily available for your short term requirements (like buying more raw materials, paying rent, electricity bills, wages to employees, etc.) as well as for long term requirements (paying off debts, more money for further expansion, etc.). Also, you very well know that your creditors will supply you material on credit only if you are worthy of it. i.e. you are able to pay them in time. (Liquidity Ratios)
In both the cases, money doesn’t come free of cost. Business should be profitable enough. Both the parties would again, check your credibility as well as the worthiness of the business. In the first case, you would be liable to pay a fixed interest to your bank, regardless of what you make. In the second, you’ve got to make enough money so that you and your friend are glad that you invested in the business. Therefore, to be sure of what you are doing, at every moment you would be analyzing your ‘profitability ratios’, like you would constantly be calculating your earnings as against your investments (EPS) and comparing it with what ever was the next best use of your money (opportunity cost).
Further, you could even decide your debt-equity ratio - how much share in the profit should be sacrificed for funds and how much should you borrow from the bank. And if ...Show more


So you are not only the manager but also the owner (major share holders) of the company. It’s a small closely knit business, but let’s see…
Author : parisiandallas
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Should Companies be required to forecast accounting data"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Financial and Management Accounting: The Contribution to Effective Business and Management
It can be derived from the report that the objective of financial accounting is to produce the financial reports like profit and loss account and balance sheet which is mainly used by the external stakeholders of the company, when the objective of management accounting is to suggest the future paths to the company management after analyzing the financial statements produced by the financial accountants and the cash flow statement.
12 pages (3000 words) Essay
Answer The international accounting standards are developed and issued by the International Accounting Standards Board (IASB). The IASB came into existence by replacing the International Accounting Standards Committee (IASC) in the year of 2001 (IAS Plus, web).
12 pages (3000 words) Essay
Accounting just like any profession has a body of theory that consist of principles, assumptions and standards that together form the building blocks of a proper accounting system. The accounting profession has developed a series of standards that are generally accepted and universally practiced.
8 pages (2000 words) Essay
Finance and Accounting
Essay, Finance and Accounting. Accounting entails the preparation of financial reports. The research delves on the companies’ compliance with International Financial Reporting Standards. The research delves on cosmetic accounting. The companies’ compliance with reporting standards enhances reliance on financial reports.
6 pages (1500 words) Essay
Data collection companies
For instance, facebook allows people to post any information that reflects their habits, desires, and anything that affects their lives. On this basis, data collection companies take advantage of this aspect to collect personal information of individuals, including their consumption habits for purposes of selling them to interested organizations (Partridge, 21).
3 pages (750 words) Essay
Define Accounting and Bookkeeping and compare and contrast the role of Professional Accountants and Bookkeepers
Luca Pocioli was regarded as the father of accounting. In the earlier days his book “Summa on Arithmetic Geometry, Proportions and Proportionality” was followed by every school and were taught to the children of the merchants. In the book, double entry system of accounting was also described.
8 pages (2000 words) Essay
Accounting Evaluation And Forecast
According to Carter & Usry, activities of an organization can be divided to three large groups, which are Planning, Organizing and Controlling. Theoretical literature often divides these activities into different subjects. In practice however, it is hard to separate these activities into different groups.
9 pages (2250 words) Essay
International Differences in Accounting
(Roberts et al, 2005). For example there are significant differences between the US GAAP standard that deals with the issue of segment reporting from the counterpart IAS standard. Under US GAAP, Statement of Financial Accounting Standard Number 131 (SFAS 131 Disclosures about segments of an enterprise and related information, which requires segmentation based on an entity's internal organization and reporting of revenue and operating income based upon the entity's internal accounting methods.).
6 pages (1500 words) Essay
Management accounting and financial accounting
hat it serves as a powerful tool for decision making of operational, strategic, performance, forecasting, measurement as well as other factors that together represent the composition of a business. The coaxial relationship of the opposite ends of the accounting practice is
11 pages (2750 words) Essay
Financial and accounting
First, financial accounting primarily provides information for external users to make investing and lending decisions whereas management accounting provides information for internal users, usually the management, to make critical
6 pages (1500 words) Essay
Comments (0)
Click to create a comment
Let us find you another Essay on topic Should Companies be required to forecast accounting data for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
Join us:
Contact Us