Techniques to liberate the function of management accounting
Write down the different techniques employed to liberate the function of management accounting?
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The technique employed to liberate the function of management accounting:
i) Marginal Costing ii) Budgetary Control iii) Standard Costing iv) Uniform Costing
Profit or Loss (P&L) Analysis: A financial statement which summarizes the revenues, costs and expenses acquired during a particular period of time - in general a fiscal quarter or year. Such records give information which exhibits the capability o
What do you mean by the term position analysis in a business? Briefly illustrate it.
Traceability: The capability to assign a cost directly to a particular activity or cost object by identifying or observing particular resources used by the activity or cost object.
A financial analysis tools that measures the need for financing. The formula is the cash-flow from operating activities divided by the cash paid for long-term asset. Cash paid for long-term assets can be found on the statement of cash-flow, in the investing-activities
Direct Cost: The cost of resources directly used by an activity. The direct costs are assigned to actions by direct drawing of units of resources used by individual actions. A cost which is particularly recognized with a single cost o
Support Costs: Costs of activities are not directly related with the production. Typical illustrations are the costs of automation support, postage, communications, process engineering, and purchasing.
Briefly define the term Strategic management and also state the reason why it is designed?
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Write a brief note on the things which Weaknesses comprises?
Briefly list out the main users of the accounting information which are related to the business?
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