Both approaches to accounting theory are valuable measures and when used aptly can combine to give a comprehensive understanding of a given situation. In essence, positive accounting theory is concerned with the reality of practices while normative accounting theory is concerned with strict guidelines for how practices should occur in an ideal environment. While a normative approach provides structure and a basis for how accounting practices should occur, reality involves individuals and therefore behaviour must be considered. The positive accounting theory allows for understanding of how behaviour impacts practices and the decision making process. Positive accounting practice is explanatory and reflective and hence can provide an insight into the reality of accounting practices.
3) The sales budget is to estimate the profitability. As we know, sales budget is used to structure the company in a way to maximize profits. With an accurate projection of future sales, the company is actually can save the expenses and protects the company from failing. If the sales projection is overstated, the president has to decide whether to proceed or to have other alternative planning.
Explain the reasoning behind your answer. Discussion Questions 7. What types of work behaviors did AIG intend to encourage through its retention bonus plan? 8. Which needs seem to be important to the employees of AIG’s Financial Products unit?
(TCO B) Cite two ways that the accounting function can contribute to the achievement of quality. 6. (TCO C) Compare and contrast the quality philosophies of Deming and Juran. • Page 2 1. (TCO G) Discuss the concept of best practices and their effect on quality management success.
For these reasons, it is necessary to analyze the competitive advantage of the different options presented. • Strengths and Opportunities: The project evaluation should consider a SWOT analysis of each potential application, which allows identifying the strengths, opportunities, threats and weaknesses. This way, it is possible to choose the best option, which maximized the firm’s strengths and opportunities, while mitigating its threats and weaknesses. • Barrier to Entry: Also it is necessary to analyze the cost of enter to the industry. • Economic Benefit: What will be the earnings associated to the project.. • Customer Preferences Bernstein should recommend to the board the
2. Competitive strategy Digging into CI’s case, it seems that the firm tries to use cost leadership strategy, and they do their best to control the costs. CI’s impressive improvement strategies include increasing productivity, cost cutting, overhead control, improving technology and increasing prices. Whether these strategies are appropriate, however, should be carefully evaluated. 2.1 Productivity The competitive strategy of increasing productivity is mainly concentrated on enhancement of direct labor productivity.
Week 1 Assignment Chapter 1 Q 2, 3, 6 2. The principal agent problem occurs when the principals delegate decision making authority to the agents. The agents often seek acceptable levels of profit and shareholder wealth while pursuing their own self interests. Self-interest can lead managers to focus on their own long term job security. The compensation committee of the board should align incentives for management with shareholder interest.
The paper also investigates its strategic shortfalls, through theoretical under-pinning. The paper utilises various theoretical models, beginning with Mintzberg's strategy formulation and implementation process, to appropriately evaluate Aldi's corporate and business strategies. Other theoretical frameworks, such as Porter's generic strategy, Ansoff's Matrix, Porter's five forces, Barney's VRIN, and Rumelt's strategy evaluation, have also been used to guide the research in the right direction. It is understood from the analysis that Aldi's business model and management structure is well suited to meet its goals and objectives. Additionally, its strategies, also appear to have a competitive strength and flexibility to changing social and regulatory framework.
Abstract The paper is for the financial management and focus on two important costing methods, the absorption costing and marginal costing. Base on the example of Simpson Ltd, it will be given the profits calculated by each method, and show the process and also explain the reason of different result. Furthermore, these two methods will be compared in the other situation in order to indicate the natural theory of both of them. On the other hand, it also will try to discuss the advantage and disadvantage of each method in financial reporting and management decision-making, then conclusion will be given to present the final personal opinion. Introduction Cost accounting is one of the most important parts of accounting system, and it plays a significant role in so many areas of business like decision-making or financial report.
Be sure to answer the following questions: b. Who are the various stakeholders that are impacted in these problems? Evaluate the tensions that exist between these stakeholders from the managerial accounting perspective. Provide a detailed explanation for your evaluation that demonstrates clear, insightful critical thinking. c. Compare and contrast reports that are legally correct versus those that are ethically correct.