There are governments that totally control their economy and do not do business with other countries. There are governments that rule monetary policy and tax business, but do not become concerned in the markets otherwise. Similar to mixed economies, the positions of a government in the configuration of an economy is crucial to understand in order to understand the economics of the country. Concepts of Macroeconomics and Understanding Business or economic cycles focus on the variations, both anticipated and unexpected, within an economy. Variations in business cycles are able to be seen as short-term and long-term progression developments and they could shift.
Judgement Case 9-1 – Inventory costs; lower of cost or market; retail inventory method Requirement 1 Theoretically, Hudson should account for the warehousing costs related to its wholesale inventories as a part of inventory. All of the necessary costs associated with preparing, and in this case storing, items for sale are to be included in inventory. The key here is that the warehousing cost is related to a particular set of items and for that reason it is important to account for the warehousing cost with the inventory in order to satisfy the matching principle. The matching principle “requires that revenues and any related expenses be recognized together in the same period” (The matching principle). By following the matching principle all of the costs associated with a particular product, not just its wholesale price, is expensed when the item is sold.
How can a flexible budget be used as a control? (Points : 15) The primary use of a flexible budget is to measure performance by comparing actual costs for a given output with the budgeted costs for the same level of output. A flexible budget is the opposite of a static budget. Flexible budget allows for variability in business and allows for unexpected changes. It distinguishes between fixed and variable costs in this way the budget can be adjusted automatically to a particular activity.
So to be able to have a productive and successful business, business owners may want to look into maximizing their profits by way of the profit maximization concept. Profit maximization is when a company comes to a conclusion on the price and output level that will turn the maximum profit by using this particular process (Wikipedia). Granted there are many different approaches to this problem; however in this essay we will be considering the TR to TC method and the MR MC method. Tiffany C Wright expressed that the total revenue to total cost method is dependent on the fact that profit equals revenue minus cost. Total revenue equals price time’s quantity.
24. While only certain leases are currently accounted for as a sale or purchase, there is theoretic justification for considering all leases to be sales or purchases. The principal reason that supports this idea is that a. all leases are generally for the economic life of the property and the residual value of the property at the end of the lease is minimal. b. at the end of the lease the property usually can be purchased by the lessee. c. a lease reflects the purchase or sale of a quantifiable right to the use of property.
What accounting assumptions necessitate the use of adjusting entries? What accounts are subject to adjusting journal entries? What are the advantages and disadvantages of using automated accounting systems to do adjusting entries? What are your thoughts on making adjusting entries; are they really needed or is this just extra work by accountants? Which basis of accounting do most companies use, cash or accrual?
B) maximum opportunity cost combinations of goods and services. C) boundary between the combinations of goods and services that can be produced and the combinations that cannot be produced when technology is changing. D) boundary between the combinations of goods and services that can be produced and the combinations that cannot be produced, given the available factors of production and the state of technology. E) maximum output that can be produced at an opportunity cost of zero. 5) Moving from one point to another on a production possibilities frontier
Companies will know where they can maximize these profits. Also consumers spending can be predicted off what provides the greatest utility or satisfaction. Because of the laws of supply and demand, it is better understood when to produce or offer goods and services and when it is better to produce
Meeting the requirements of generally accepted accounting principles. Recording the financial history of the organization. The basic difference between managerial and financial accounting is that: Financial accounting is concerned with providing financial information to stockholders, whereas managerial accounting is concerned with providing information to managers for their use in planning, controlling and decision making. Managerial
COURSE WORK 1- FINANCIAL MANAGEMENT/FINANCIAL ACCOUNTING 1. UNDERSTANDING OF THE DIFFERNCE BETWEEN FINANCIAL ACCOUNTING AND MANAGEMENT ACCOUNTING Financial accounting is focused on generally accepted accounting principles- producing a limited set of financial statements. This includes the balance sheet and the income statements, by which the overall past performance of business can be judged by outsiders. Management accounting deals with information that is not made public and is used for internal decisions making only. These reports are far more detailed than financial accounting reports and can cover performances and activities by departments, teams, products, customers and employees.