Reliability-Accounting information
What do you mean by the term Reliability which is accounting information?
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Reliability: Management accounting must be free from noteworthy errors or bias. This must be capable of being relied on by managers to symbolize what it is supposed to stand for. Although both relevance and reliability are mush significant, the problem that we seldom face in accounting is that information which is highly relevant might not be much dependable and that that is reliable might not be much relevant.
Why most of the larger businesses are not managed as the single unit through one manager?
Business combination in which the acquiring corporation buys all the assets of the target, recording them at fair market values. The target is absorbed into the acquiring corpora- tion, and has gains on the sales of the assets that appear on its last tax return. In ad
Full Cost: The sum of all costs needed by a cost object comprising the costs of activities executed by other entities in spite of of funding sources.
A company's annual report is the single most important way for it to convey itself to potential investors. As such, it should be no surprise tha
Cost Accounting Practice: Any disclosed or recognized accounting process or technique that is used for the measurement of cost, assignment of cost to cost objects and assignment of cost to accounting periods.
What do you mean by the term position analysis in a business? Briefly illustrate it.
Cost Object (also referred to as Cost Objective): It is an activity, item, or output whose cost is to be computed. In a wide sense, a cost object can be an organizational division, task, a function, product, service, or a customer.
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What are the key qualities or characteristics which accounting information should possess?
Cost Driver: Any factor which causes a modification in the cost of an action or output. For illustration, the quality of portions received by an activity, or the degree of complexity of tax returns to be evaluated by the IRS.
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