Tools for Business Decision Management Makers 14 potx

... seems likely that this is not true for most of these businesses. At the same time, most of the 68 per cent treat all overheads as a fixed cost. It seems likely that, for most businesses, overheads have ... 1.10 Scrap value 1.70 0.40 The metal wire is in constant use by the business for a range of its products. The fabric has no other use for the business and is scheduled to be sc...

Ngày tải lên: 22/06/2014, 02:20

... for 20 performances: (£16,400 × 50% × 20) £164,000 Touring company ticket sales: Total revenue for each performance for a full house: £ 200 @ £22 = 4,400 500 @ 14 = 7,000 300 @ £10 = 3,000 14, 400 £ Ticket ... helpful for those involved with pricing decisions to have some feel for the elasticity of demand of the commodity that will be the subject of a decision. The sensitiv- ity...

Ngày tải lên: 22/06/2014, 02:20

... unlimited quantities of products C and D to the business, charging £40 per unit for product C and £55 per unit for product D. Next year’s estimated demand for the products, from the market (in the ... its basket makers have some spare time. An overseas retail chain has offered the business an order for 300 baskets at a price of £13 each. Without considering any wider issues, shou...

Ngày tải lên: 22/06/2014, 02:20

... cater for a range of products and no single product decision will cause the business to amend it. Required: (a) Prepare a summary of information that would help with the pricing decision for the ... be sold. For every £5 below this price, the business is able to sell 10 more units. For example, at a price of £95, 10 units would be sold, at £90, 20 units would be sold, and so o...

Ngày tải lên: 22/06/2014, 02:20

... to use the May figures for explaining the variances. Note that the business had budgeted for a higher level of output for June than it did for May. CHAPTER 7 ACCOUNTING FOR CONTROL 224 What else ... and therefore working towards achieving the objectives of the business. (We should remember that budgets are the short-term plans for achieving the business s objectives.) This enab...

Ngày tải lên: 22/06/2014, 02:20

... set out below. Size of business Large % Medium % Small % All % Underperformed 8 14 32 14 Performed as expected 82 72 68 77 Overperformed 10 14 0 9 It seems that smaller businesses are much more ... progress for income-measurement purposes, and the cost of items for use in pricing decisions. Real World 7.7 provides some information on the use of standards in practice. Other uses f...

Ngày tải lên: 22/06/2014, 02:20

... probabilities are based on information gathered from past experience. Thus, for example, the transport manager of a business operating a fleet of vans may be able to provide information concerning the ... estimated price before a zero NPV is obtained. The margin of safety is, therefore, not very high for this factor. In practice this should not represent a real risk because the business...

Ngày tải lên: 22/06/2014, 02:20

... the business operates when we are undertaking a position analysis or when we are formulating plans for the future. Management What is strategic management accounting? CHAPTER 9 STRATEGIC MANAGEMENT ... in Step 3) and formulating long- and short-term plans to pursue them. 5 Reviewing business performance and exercising control by assessing actual perform- ance against planned perf...

Ngày tải lên: 22/06/2014, 02:20

... EVA ® is used by many large businesses, both in the US and Europe, it tends to be used for management purposes only: few businesses report this measure to share- holders. One business that does, however, ... Timely decisions. If information concerning a local division has to be gathered, shaped into a report and then passed up the hierarchy before a decision is made, it is unlikely th...

Ngày tải lên: 22/06/2014, 02:20

... Similar businesses within the same industry. The performance of similar divisions of other businesses, or whole businesses operating within the same industry, may pro- vide a useful basis for comparison. ... another business, or a whole business entity? We may encounter a number of problems such as: l Obtaining the information required. This is particularly true for a division within a...

Ngày tải lên: 22/06/2014, 02:20