2. What item costs and revenues are relevant to the decision of how many units of that item to stock? The item costs relevant to the decision of how many units of that item to stock are the liquidation costs if the item has not been demanded. The revenues related to this same decision are the contribution margins of that item if it has been demanded. The two are used in a way that balances these costs and revenues.
a. Adjusted trial balance b. Comparative balance sheets c. Current income statement d. Additional information 4. The primary purpose of the statement of cash flows is to a. provide information about the investing and financing activities during a period. b. prove that revenues exceed expenses if there is a net income.
| On the Schedule of Cost of Goods Manufactured, the final Cost of Goods Manufactured figure represents: | A | the amount of cost charged to Work in Process during the period. | B | the amount of cost transferred from Finished Goods to Cost of Goods Sold during the period. | C | the amount of cost placed into production during the period. | D | the amount of cost of goods completed during the current year whether they were started before or during the current year. | 4.
CMI Diploma in Management and Leadership Unit 5007: Financial Control Andrew Blackburn Contents Page 1.1 Assess the relationship(s) between a financial system or function and other systems or functions in an organisation Page 3 -4 1.2 Describe the systems of accounts and financial statements used to control a financial system Page 4 1.3 Analyse financial information contained in a set of accounts or financial statements Page 5-6 2.1 Construct a budget for an area of management responsibility Page 6 2.2 Develop budgetary control systems and compare actuals with planned expenditure Page 7-8 2.3 Discuss corrective actions to be taken in response to budgetary variations Page 8 2.4 Identify conflicts that can occur with management control systems and how these could be resolved or minimised Page 9-10 3.1 Identify the current and potential sources of finance that support organisational activities Page 10 3.2 Evaluate the distribution of finance in support of organisational activities Page 10 - 11 3.3 Discuss the monitoring and control of finance employed in support of organisational activities Page 11-12 1.1 Assess the relationship(s) between a financial system or function and other systems or functions in an organisation All aspects of the business are reflected in a financial system somewhere for example Budget allocations or P&L reports. Management accounting refers to accounting information developed for managers within an organisation. CIMA (Chartered Institute of Management Accountants) defines Management accounting as “Management Accounting is the process of identification, measurement, accumulation, analysis, preparation, interpretation, and communication of information that used by management to plan, evaluate, and control within an entity and to assure appropriate use of an
Any expense accounts would be listed on the debit side. A debit increases the balance of the asset and expense accounts. Decreases the balance of liability, revenue, and owner equity. Expenses In what two ways is the word credit defined in Debits and Credits? A credit is on the right side of the T-account.
IRR represents the discount rate at which the present value of the expected cash inflows from a project equals the present value of the expected cash outflows. Internal rate of return is used to evaluate the attractiveness of a project or investment. If the IRR of a new project exceeds a company’s required rate of return, that project is desirable. If IRR falls below the required rate of return, the project should be rejected. It is to be noted that NPV uses an absolute amount IRR is interpreted in terms of ‘Rate’.
Step 2: Map a total Compensation Strategy Often use in marketing to clarify and communicate a product’s identity. A strategic map offers a picture of a company’s compensation strategy and clarifies the message that the company is trying to deliver with its compensation system. It is involve the elements in the pay model such as objectives, alignment, competitiveness, contribution and management. Step 3: Implement This step,
Direct Labour Budget The direct labor budget depends on the amount of production for the specific time period. Manufacturing Overhead Budget The variable budget required based on the production level estimated for the specific time period would be used to determine the manufacturing overhead budget. Selling and Administrative Expense Budget The Master Budget should also take into consideration the selling and administrative expenses as well. Capital Acquisitions
Budget definition: Budgets are financial plans looking at expected costs and revenues over a future period. Budget definition: Budgets are financial plans looking at expected costs and revenues over a future period. Profit: the amount of money a business has made over a certain time period. Profit= Total revenue-Total costs. Profit: the amount of money a business has made over a certain time period.