3. Using the model of the individual-organizational exchange relationship, explain the relationship that employees of AIG’s Financial Products unit believed they had with the company. How was this exchange relationship violated? 4. Which motivation theory do you think has the most relevance for understanding the responses of the Financial Product employees to the implementation and unraveling of the retention bonus plan?
| Huffman Trucking | Memo To: Graham Grove, Vice President of Industrial Relations From: Paul Johnson Director of Accounting CC: Simone Ojeda Accounting Specialist Date: [ 4/9/2012 ] Re: Results from ratio calculations and horizontal and vertical analysis What do the liquidity, profitability, and solvency ratios reveal about the company’s financial position? Liquidity ratios are the ratios that measure the ability of Huffman Trucking to meet its short term debt obligations. These ratios measure the ability of this company to pay off its short-term liabilities when they fall due. Profitability ratios measures Huffman Trucking’s ability to generate earnings relative to sales, assets and equity. These ratios assess the ability of the company to generate earnings, profits and cash flows relative to some metric, often the amount of money invested.
For example, the cash flow can be affected when the company purchases products, and if the costs of the products are an outstanding amount in turn it will affect the assets on the balance sheet. The cash flow statement studies the organizations transactions and puts them into categories such as, operating, investing, and financing
Explain the relevant range concept and discuss whether you agree with Smith & Company. What is a CVP analysis and how is it used in managerial accounting? What is the difference between: unit-level, batch-level, product-level, and facility-level
The organization needs to select the fees, promotion, location, and productivity methods to optimize profits. The CVP analysis provides the organization with data to make these decisions (Kimmel, Weygandt, & Kieso, 2009). The CVP income statement applies the information in a format used with staff. The CVP income statement organizes fees in categories such as variable cost, fixed cost, contribution margin, and net income (Kimmel, Weygandt, & Kieso, 2009). Break-even analysis The association of the CVP analysis is the movement of fixed and variable costs.
One thing we can be sure of is that a business cycle affects different sectors of our community in different ways. Gross domestic product is a great measure of an economies growth. The chair of the Federal Reserve uses information gathered from GDP to assist with making necessary adjustments to keep a balance between inflation and unemployment.
Accounting addresses several ways a business may classify an expenditure and depreciation over time. Government makes their own rules or change existing rules to fit their needs. Structural, passive, nominal, deficits, and surpluses are ways of defining the economy based either on government actions designed to run a deficit, surplus, or other external factors adjusted for inflation or not (Colander, 2010, pp. 407-410). Our text states “Deficits are summary measures of the state of the economy.
The components of the statement of cash flow shows how changes in balance sheet and income accounts affect cash and cash equivalents, and breaks the analysis down into operating, investing, and financing activities. The statement shows the current operating results for a period of time. These details are reflected in the balance sheet. As an analytical tool, the statement of cash flows is useful in determining the short-term viability of a company, particularly its ability to pay bills. o Which financial statement is the most important?
Predicting Relevant Economic Quantities. Managerial Economics helps the management in predicting various economic quantities such as – cost, profit, demand, capital, production, price etc. As a business manager has to work in an environment of uncertainty, the future should be well predicted in the light of these quantities. 4. Understanding Significant External Forces.
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.