Week 13, Chap 12 Relevant Information for Special Decisions
|
|
- Buck Preston
- 5 years ago
- Views:
Transcription
1 Week 13, Chap 12 Relevant Information for Special Decisions Instructor: Michael Booth Cabrillo College
2 Overview Costs Resources sacrificed to achieve specific objective i.e. manufacturing a specific product or provided a specific service Expenses costs charged against revenue in a particular accounting period
3 Learning Objective To identify the characteristics of relevant information
4 Identifying Relevant Costs Focus on future costs and future revenues that differ among decision alternatives. Organize them in a manner that clearly indicates how they differ under each alternative.
5 Davis Driveways, Inc. (DDI) pours concrete driveways for single family homes. DDI uses a cost-plus pricing approach. The company s accountant prepared the following report showing how DDI established the price per driveway at $350. Davis Driveways, Inc. Cost Plus Pricing Policy Materials $100 Labor 120 Overhead* 80 Total $300 Desired Profit 50 Price $350 *Annual overhead cost for rent on the corporate office and supervisory salaries is $80,000. Normal volume is 1,000 driveways per year. Overhead cost per unit is determined as $80,000 / 1,000 units = $80 per unit. The relevant range is from 800 to 1,500 units.
6 In Class Demonstration Case A new builder in town, Rachel Rodgers, has acquired a large tract of land upon which she intends to build 200 single family homes. Ms. Rodgers offers to purchase all 200 driveways from DDI. However, she is willing to pay only $250 per driveway. Required: Assume your group is a management team responsible for deciding whether to accept or reject Ms. Rodgers offer. Develop a response, support your decision with appropriate computations, and choose a spokesperson to explain your answer.
7 Relevant Costs Sunk Costs Opportunity Cost Overview of Concepts
8 Relevant Cost Specific to a particular decision Relevant cost of the particular decision changes if alternative course of action is taken Sometimes refered to as differential costs
9 Identifying Relevant Costs An avoidable cost is a cost that can be eliminated, in whole or in part, by choosing one alternative over another. Avoidable costs are relevant costs. Unavoidable costs are irrelevant costs.
10 Relevant Cost Analysis: A Two- Step Process Step 1 Step 2 Eliminate costs and benefits that do not differ between alternatives. Use the remaining costs and benefits that differ between alternatives in making the decision. The costs that remain are the differential, or avoidable, costs.
11 Identifying Relevant Costs Sunk costs are never relevant. Two broad categories of costs are never relevant in any decision. They include: Sunk costs. Future costs that do not differ between the alternatives. A sunk cost has been incurred in a past transaction and cannot be changed. It is not relevant for making current decisions.
12 Relevance Is an Independent Concept Which costs are relevant? Costs are relevant because they differ Whether a cost is fixed or variable has no bearing on its relevance. A particular cost that is relevant in one context may be irrelevant in another.
13 Sunk Costs Aside from tax consequences, sunk costs are never relevant. What are sunk costs? Sunk costs result from past decisions that cannot be changed. Note: Sunk costs are never relevant!
14 Sunk costs(cont.): Disposal and salvage values Disposal and Salvage Values Cash inflows from the disposal of assets is a relevant cash inflow Any salvage value at the end of the useful life of the assets will also be relevant A loss on disposal may have a favorable tax impact if the loss can be offset against taxable gains or taxable income
15 Sunk Costs (continue) Cost of obsolete inventory Book Value of old equipment Note: The ability to recognize and ignore relevant vs. sunk costs is important to decision makers support by managerial accountants
16 Sunk Costs (cont) Obsolete inventory (Example) General Dynamics has 100 obsolete aircraft parts in inventory Original manufacturing cost of parts was $100,000 Alternatives: Re-machine parts of $30,000 and sell for $50,000 Scrap for $5,000
17 Sunk Costs (obsolete Inv. Cont) Expected future Revenue Expected future costs Relevant excess of revenue vs. costs Accumulated historical cost of inventory* Re- Machine Scrap Difference $50,000 $ 5,000 $45,000 30, ,000 $20,000 $ 5,000 $15,000 $100,000 $100,000 0 Net loss on Project ($80,000) ($95,000) $15,000 Note: Inventory cost is irrelevant it is unaffected by the decision
18 Sunk Cost (Book Value of Equipment) Book value of equipment is not a relevant cost Should not be used in decision for replacement of equipment It is a past cost, not a future cost Depreciation The periodic allocation of the cost of equipment Equipment book value ( or net book value) is the original cost (historical cost) less accumulated depreciation It is a past cost (to include accumulated depreciation), not a future cost and is not relevant. Note: Future Depreciation can be a relevant cost Disposal Value Is relevant It is the future inflow of cash There is a difference between disposal value and book value Book value must be evaluated separately from the irrelevant book value Cost of New or replacement equipment It is a relevant cost, it is a future outflow
19 Sunk Costs Sunk costs may cause ethical dilemmas Although the book value of an old item has no economic significance (i.e. not relevant), the accounting treatment of past costs may make it difficult for managers to regard them as irrelevant. The possibility of recording an accounting loss may place managers in an ethical dilemma. Fearing the loss will lead to superiors questioning his or her judgment, a manager might prefer to use the old item, as opposed to replacing it and be forced to record a loss. Cumulative effect of many such decisions will be harmful to the long-run economic health of the organization
20 Sunk Cost (Book value of old equipment) cont. Decision to keep or replace equipment Historical cost - $10, year useful life span Depreciation is straight-line, $1,000 per year Book Value at the end of 6 years Original Cost $10,000 Accumulated depreciation (6 x $1,000) 6,000 Book Value $ 4,000
21 Sunk Cost (Book Value of old equipment) cont. Replacement Old Machine Machine Original Cost $ 10,000 $ 8,000 Useful life in year 10 4 Current age in year 6 0 Useful life remaing in yrs 4 10 Accumulated Depreciation $ 6,000 $ - Book Value $ 4,000 N/A Disposal value (in cash) now $ 2,500 NA Disposal value in 4 years $ - $ - Annual Cash operating costs $ 5,000 $ 3,000
22 Sunk cost (book value vs replacement) cont. Book Value is irrelevant: no difference
23 Revelant Costs, Cost Behavior In-class Exercise Training Cost Items Hotel Facility Relevant? Rental Fee for Classroom $2,000 $1,500 Twenty Advertising Brochures Distributed to each Student for Referrals Cost of Instruction 5,000 5,000 Books (per student) Refreshments (per student) 5 4 Depreciation on Instructional Equipment Cost Behavior Product or GS&A Pass Fast, Inc. is considering two alternative locations in which to conduct its CPA review course. One alternative is an exclusive hotel; the other is a moderately priced training facility. The hotel is in a central location easily accessible to potential students. The training facility is in a less desirable location. Pass Fast has gathered the following cost data regarding the two locations.
24 Required Pass Fast, Inc (cont.) a. In the column titled Relevant? indicate whether each cost is relevant (Yes) or not relevant (No) to deciding which facility to rent for the course. b. In the column titled Cost Behavior indicate whether each cost is fixed, variable, or mixed relative to the number of students attending the course. c. In the column titled Product or GS&A indicate whether each cost would be classified as a product cost or a general, selling, and administrative (GS&A) cost.
25 Relevance Is an Independent Concept Which costs are relevant? Costs are relevant because they differ Whether a cost is fixed or variable has no bearing on its relevance. A particular cost that is relevant in one context may be irrelevant in another.
26 Differential Revenue and Avoidable Cost Relevant revenues: 1. Must be future oriented 2. Differ for the alternatives under consideration 3. Relevant revenues differ between the alternatives, they are sometimes called differential revenues. Avoidable Cost 1. costs managers can eliminate by making specific choices
27 Opportunity Costs An opportunity cost is the profit foregone by selecting one alternative over another It is the net return that could be realized if a resource is put to the next best use It is what we give up from the road not taken
28 Opportunity Costs An opportunity cost is the profit foregone by selecting one alternative over another It is the net return that could be realized if a resource is put to the next best use It is what we give up from the road not taken
29 Learning Objective Difference between: unit-level batch-level product level facility-level costs How these costs affect decision making.
30 Relevant (Avoidable) Costs Unit-level Costs Batch-level Costs Product-level Costs Facility-level Costs Avoided by eliminating one unit of product. Avoided when a batch of work is eliminated. Avoided if a product line is eliminated. Some costs may be avoided if a business segment is eliminated.
31 Learning Objective To make appropriate special order decisions.
32 Relevant Information and Special Decisions Occasionally, a company receives an offer to sell its product at a price significantly below its normal selling price. The company must make a special order decision to accept or reject the offer.
33 Budgeted Cost for Expected Production of 2,000 Printers Unit-level costs Materials costs (2,000 $90) $ 180,000 Labor costs (2,000 $82.50) 165,000 Overhead (2,000 $7.50) 15,000 Total unit-level costs $ 360,000 Batch-level costs (200 units per batch) Assembly setup (10 $1,700) 17,000 Materials handling (10 $500) 5,000 Total batch-level costs 22,000 Product-level costs Engineering design 14,000 Production manager's salary 63,300 Total product-level costs 77,300 Facility-level costs Segement-level costs 85,000 Division manager's salary 12,700 Company president's salary 43,200 Depreciation 27,300 General expenses 31,000 Total facility-level costs 199,200 Total expected costs $ 658,500 Here is budgeted cost information for Premier, a company that produces printers. The company has enough capacity to produce additional printers, but is planning to produce to meet current demand. Cost per unit - $658, = $329.25
34 Special Order Decision A foreign customer offers to purchase 200 printers at $250 per printer. This price is well below the unit cost of $ Should the company accept this one time order? Relevant Information for Special Order Differential revenue ($ ) $ 50,000 Avoidable unit-level costs ($ ) (36,000) Avoidable batch-level costs: Assembly setup (1,700) Materials handling (500) Contribution to income $ 11,800 If the order is accepted, profitability will increase by $11,800.
35 Budgeted Cost for Expected Production of 2,000 Printers Unit-level costs Materials costs (2,000 $90) $ 180,000 Labor costs (2,000 $82.50) 165,000 Overhead (2,000 $7.50) 15,000 Total unit-level costs $ 360,000 Batch-level costs (200 units per batch) Assembly setup (10 $1,700) 17,000 Materials handling (10 $500) 5,000 Total batch-level costs 22,000 Product-level costs Engineering design 14,000 Production manager's salary 63,300 Total product-level costs 77,300 Facility-level costs Segement-level costs 85,000 Division manager's salary 12,700 Company president's salary 43,200 Depreciation 27,300 General expenses 31,000 Total facility-level costs 199,200 Total expected costs $ 658,500 Here is budgeted cost information for Premier, a company that produces printers. The company has enough capacity to produce additional printers, but is planning to produce to meet current demand. Cost per unit - $658, = $329.25
36 Special Order Decision Opportunity Costs Premier has excess productive capacity. Suppose Premier has the opportunity to lease its excess capacity (unused building and equipment used for the additional printers) for $15,000 vs the sale of the incremental 200 printers at $250. Should Premier accept the special offer given this new information? Relevant Information for Special Order Differential revenue ($ ) $ 50,000 Avoidable unit-level costs ($ ) (36,000) Avoidable batch-level costs: Assembly setup (1,700) Materials handling (500) Opportunity cost (15,000) Contribution to income $ (3,200) If the order is rejected, profitability will decrease by $3,200.
37 Special Order Decision Relevance and the Decision Context If Premier can increase income by selling its printers for $250, can the company reduce its normal selling price to $250?
38 Budgeted Cost for Expected Production of 2,000 Printers Unit-level costs Materials costs (2,000 $90) $ 180,000 Labor costs (2,000 $82.50) 165,000 Overhead (2,000 $7.50) 15,000 Total unit-level costs $ 360,000 Batch-level costs (200 units per batch) Assembly setup (10 $1,700) 17,000 Materials handling (10 $500) 5,000 Total batch-level costs 22,000 Product-level costs Engineering design 14,000 Production manager's salary 63,300 Total product-level costs 77,300 Facility-level costs Segement-level costs 85,000 Division manager's salary 12,700 Company president's salary 43,200 Depreciation 27,300 General expenses 31,000 Total facility-level costs 199,200 Total expected costs $ 658,500 Here is budgeted cost information for Premier, a company that produces printers. The company has enough capacity to produce additional printers, but is planning to produce to meet current demand. Cost per unit - $658, = $329.25
39 Special Order Decision Relevance and the Decision Context If Premier can increase volume from 2,000 units to 2,200 unit by selling its printers for $250. Can the company reduce its normal selling price to $250? Selling 2,200 Printers for $250 Per Unit Revenue ($250 2,200) $ 550,000 Unit-level costs ($180 2,200) $ 396,000 Batch-level costs (11 $2,200) 24,200 Production-level costs 77,300 Facility-level costs 199,200 Total cost 696,700 Projected loss $ (146,700) Note: Revenue, unit and batch costs increase with number of units
40 Special Order Decision Qualitative Characteristics Should a company ever reject a special order if the relevant revenues exceed the relevant costs? What will happen if Premier s regular customers learn that the company sold printers to another buyer for $250 per unit?
41 Qualitative Features A company that uses vertical integration controls the full range of activities from acquiring raw materials to distributing goods and services. An oil company, like ExxonMobil, is a good example of vertical integration. Outsourcing reduces the level of vertical integration, passing some of a company s control over its production to outside suppliers.
42 The Make or Buy Decision When a company is involved in more than one activity in the entire value chain, it is vertically integrated. A decision to carry out one of the activities in the value chain internally, rather than to buy externally from a supplier is called a make or buy decision.
43 Vertical Integration- Advantages Smoother flow of parts and materials Better quality control Realize profits
44 Vertical Integration- Disadvantage Companies may fail to take advantage of suppliers who can create economies of scale advantage by pooling demand from numerous companies. While the economics of scale factor can be appealing, a company must be careful to retain control over activities that are essential to maintaining its competitive position.
45 In-class exercise Carroll Company Instructor: Michael Booth Cabrillo College
46 Carroll Company Complete a, b, & c Does the volume make a difference? Why? What should be the controls for the qualitative factors?
47 Carroll Company (cont.) Quantity 100,000 Batch size 1000 # batches 100 Materials cost $ 5.00 $ 500, Labor cost $ 4.00 $ 400, Manufacturing supplies $ 0.50 $ 50, Batch-Level Costs $ 2, $ 200, Product level Costs $ 150, $ 150, Facility-Level Costs $ 180, $ 180, Total Costs $ 1,480, Cost Per unit $ 14.80
48 Carroll Company A. Bypassing Carroll s regular distribution channel, Granado s Home Maintenance Company, has offered to buy a batch of 500 electric drills for $12.50 each directly from Carroll. Carroll s normal selling price is $20 per unit. Based on the preceding quantitative data, should Carroll accept the special order? Support your answer with appropriate computations. B. Would your answer to requirement A change if Granado s offered to buy a batch of 1,000 electric drills for $11.60 each. Support your answer with appropriate computations C. Describe the Qualitative Factors that Carroll should consider before accepting a special order to sell electric drills.
49 Carroll Company Alternative (a) 500 drills Quantity 500 Batch size 1000 # batches 1 Materials cost $ 5.00 $ 2, Labor cost $ 4.00 $ 2, Manufacturing supplies $ 0.50 $ Batch-Level Costs $ 2, $ 2, Product level Costs $ 150, $ - Facility-Level Costs $ 180, $ - Total Costs $ 6, Cost Per unit $ Price offered $12.50 Cost =$13.50
50 Carroll Company Alternative (b) 1000 drills Quantity 1,000 Batch size 1000 # batches 1 Materials cost $ 5.00 $ 5, Labor cost $ 4.00 $ 4, Manufacturing supplies $ 0.50 $ Batch-Level Costs $ 2, $ 2, Product level Costs $ 150, $ - Facility-Level Costs $ 180, $ - Total Costs $ 11, Cost Per unit $ Price offered $11.60 Cost =$11.50
51 Outsourcing decision Pleasant Toy Company
52 Pleasant Toy Company Model K Quantity 15,000 Model K Unit-level material costs $ 6 $ 90,000 Unit-level labor costs $ 20 $ 300,000 Unit-level overhead costs $ 8 $ 120,000 Depreciation $ 48,000 $ 48,000 Model K production Supervisor Salary $ 42,000 $ 42,000 Inventory Holding Cost $ 108,000 $ 108,000 Allocated portion of Facitly cost $ 72,000 $ 72,000 Total Costs $ 780,000 Cost per Unit $ 52.00
53 Additional Information: OutSourcing Decision Pleasant Toy Company 1. The manufacturing equipment originally cost $420,000 and has a book value of $240,000, a remaining useful life of four years, and zero salvage value. If the equipment is not used to produced Model K in the production process, it can be leased for $36, Pleasant has the opportunity to purchase for $200,000 new manufacturing equipment that will have an expected useful life of four years and salvage value of $80,000. This equipment will increase productivity substantially, thereby reducing unit-level LABOR costs by 20% 3. If Pleasant discontinues the production of Model K, the company can eliminate 50 % of its inventory holding cost 4. An Independent contractor has offered to make the same product for Pleasant for $42 each
54 Pleasant Toy Company A. Determine the avoidable cost per unit to produce Model K assuming that Pleasant is considering the alternatives between making the product using the existing equipment and outsourcing the product to the independent contractor. Based on the quantitative data, should Pleasant outsource Model K? B. Assuming the Pleasant is considering whether to replace the old equipment with the new equipment, determine the avoidable costs (relevant) per unit to produce Model K using the new equipment and the avoidable cost (relevant) per unit to produce Model K using the old equipment. Calculate the impact of profitability of Model K were made using the old equipment vs the new equipment. C. Assuming that Pleasant is considering either to purchase the new equipment or to outsource Model K, calculate the impact on profitability between the two alternatives.
55 Pleasant Toy Company (a) outsource $42 comparison Quantity 15,000 Make. BUY Unit-level material costs $ 6 $ 90,000 $ 90,000 Unit-level labor costs $ 20 $ 300,000 $ 300,000 Unit-level overhead costs $ 8 $ 120,000 $ 120,000 Depreciation $ 48,000 $ 48,000 $ - Model K production Supervisor Salary $ 42,000 $ 42,000 $ 42,000 Inventory Holding Cost $ 108,000 $ 108,000 $ 54,000 Allocated portion of Facitly cost $ 72,000 $ 72,000 $ - Lease $ 36,000 Total Costs $ 780,000 $ 642,000 $ 630,000 Cost per Unit $ $ $ 42.00
56 Pleasant Toy Company (b) Existing vs New Model K Quantity 15,000 Model K Avoidable Model K Relevant Avoidable Replacement Avoidable Costs Unit-level material costs $ 6 $ 90,000 $ - Unit-level labor costs $ 20 $ 300,000 $ 300,000 $ 240,000 $ 60,000 Unit-level overhead cost $ 8 $ 120,000 $ - Depreciation $ 48,000 $ 48,000 $ - $ 30,000 $ (30,000) Model K production Supervisor Salary $ 42,000 $ 42,000 $ - Inventory Holding Cost $ 108,000 $ 108,000 $ - Allocated portion of Facitly cost $ 72,000 $ 72,000 $ - Lease $ 36,000 $ 36,000 Total Costs $ 780,000 $ 336,000 $ 270,000 $ 66,000 Cost per Unit $ $ $ $ 4.40
57 Pleasant Toy Company (c) outsource $42 comparison vs new Model K Model K Model K Relevant Replacement Quantity 15,000 BUY New Machine Unit-level material costs $ 6 $ 90,000 $ 90,000 Unit-level labor costs $ 20 $ 300,000 $ 240,000 Unit-level overhead cost $ 8 $ 120,000 $ 120,000 Depreciation $ 48,000 $ - $ 30,000 Model K production Supervisor Salary $ 42,000 $ 42,000 $ 42,000 Inventory Holding Cost $ 108,000 $ 108,000 $ 54,000 Allocated portion of Facitly cost $ 72,000 $ 72,000 $ - Lease Total Costs $ 732,000 $ 630,000 $ 576,000 Cost per Unit $ $ Outsourcing vs Replacement = $ = $3.60 x 15,000 $54,000 net increase to income
58 Joint Costs/ Split off Costs
59 Joint Costs/Split-off Point Cost allocation problems arise if two or more products (frequently intermediate products) emerge from a SINGLE production process. This situation is rather common in the manufacture of chemicals and semiconductors. Joint costs: all manufacturing costs incurred prior to the split off point. Joint Costs are never relevant Split off point : the stage of production at which the different individual products can be separately identified.
60 Joint Costs/Split-off point Separable Costs: costs incurred beyond the split-off point that are assignable to the individual products yielded by an initially identical process. Separable Costs are relevant (differential)
VII. Categorias, Flujos y Asignacion de Costos
VII. Categorias, Flujos y Asignacion de Costos Exercise 11-3A Event Balance Sheet Income Statement No. Assets = Liab. + Com. Stk. + Ret. Ear. Rev. - Exp. = Net Inc. a. I D = NA + NA + NA NA NA = NA b.
More informationCAPITAL BUDGETING AND THE INVESTMENT DECISION
C H A P T E R 1 2 CAPITAL BUDGETING AND THE INVESTMENT DECISION I N T R O D U C T I O N This chapter begins by discussing some of the problems associated with capital asset decisions, such as the long
More informationSlide Contents. Chapter 12. Analyzing Project Cash Flows. Learning Objectives Principles Used in This Chapter. Key Terms
Chapter 12 Analyzing Project Cash Flows Slide Contents Learning Objectives Principles Used in This Chapter 1.Identifying Incremental Cash Flows 2.Forecasting Project Cash Flows 3.Inflation and Capital
More informationDiff: 1 Topic: The Internal Rate of Return Method LO: Understand and apply alternative methods to analyze capital investments.
Chapter 10 Capital Budgeting Decisions 1) The present value of a given sum to be received in five years will be exactly twice as great as the present value of an equal sum to be received in ten years.
More informationACCT 151A WEEK 2, CHAP 2. Instructor: Michael Booth Cabrillo College
ACCT 151A WEEK 2, CHAP 2 Instructor: Michael Booth Cabrillo College ANALYZING BUSINESS TRANSACTIONS Property and Financial Objectives Interest 1. Record in equation form the financial effects of a business
More informationCost Data in Decision Making
Cost Data in Decision Making Cost Data for Decision Making Overview Capital Investment Make vs Buy Production Capacity Product Mix Capital Budgeting Considering Acquiring Equipment Long-term Decision:
More informationCAPITAL BUDGETING. Key Terms and Concepts to Know
CAPITAL BUDGETING Key Terms and Concepts to Know Capital budgeting: The process of planning significant investments in projects that have long lives and affect more than one future period, such as the
More informationMANAGEMENT INFORMATION
CERTIFICATE LEVEL EXAMINATION SAMPLE PAPER 3 (90 MINUTES) MANAGEMENT INFORMATION This assessment consists of ONE scenario based question worth 20 marks and 32 short questions each worth 2.5 marks. At least
More informationFINALTERM EXAMINATION Spring 2010 MGT402- Cost & Management Accounting (Session - 4) Solved by Mehreen Humayun vuzs Team.
FINALTERM EXAMINATION Spring 2010 MGT402- Cost & Management Accounting (Session - 4) Solved by Mehreen Humayun vuzs Team Time: 90 min Marks: 69 Question No: 1 ( Marks: 1 ) - Please choose one Cost of finished
More informationFINALTERM EXAMINATION Spring 2009 MGT402- Cost & Management Accounting (Session - 3) Question No: 1 ( Marks: 1 ) - Please choose one All of the following are a part of Planning Process EXCEPT: Identifying
More informationCapítulo 10 Differential Analysis
Capítulo 10 Differential Analysis Exercise 11-1 (15 minutes) Case A Case B Item Relevant Irrelevant Relevant Irrelevant a. Sales revenue... X X b. Direct materials... X X c. Direct labor... X X d. Variable
More information2018 LAST MINUTE CPA EXAM NOTES
2018 LAST MINUTE CPA EXAM NOTES Page intentionally left blank 2018 LAST MINUTE CPA EXAM NOTES BEC (Volume 1) Copyright 2018 by Glomont LLC. First edition Notice of Rights. All rights reserved. No part
More informationAnalyzing Project Cash Flows. Principles Applied in This Chapter. Learning Objectives. Chapter 12. Principle 3: Cash Flows Are the Source of Value.
Analyzing Project Cash Flows Chapter 12 1 Principles Applied in This Chapter Principle 3: Cash Flows Are the Source of Value. Principle 5: Individuals Respond to Incentives. Learning Objectives 1. Identify
More informationEngineering Economics and Financial Accounting
Engineering Economics and Financial Accounting Unit 5: Accounting Major Topics are: Balance Sheet - Profit & Loss Statement - Evaluation of Investment decisions Average Rate of Return - Payback Period
More informationManagerial Accounting (ACC 212) Uses of Accounting Information II (ACC 240)
Managerial Accounting (ACC 212) Uses of Accounting Information II (ACC 240) Final Exam Review (Yellow) 1) Beginning Raw Materials Inventory $ 1 Ending Raw Materials Inventory 3 Purchases of Raw Materials
More informationManagerial Accounting (ACC 212) Uses of Accounting Information II (ACC 240)
Managerial Accounting (ACC 212) Uses of Accounting Information II (ACC 240) Final Exam Review (Blue) 1) Beginning Raw Materials Inventory $ 3 Ending Raw Materials Inventory 5 Purchases of Raw Materials
More information'.fc 1. Chapter 1 Elements of Financial Statements 2. Chapter 2 Understanding the Accounting Cycle 40. Questions 23. Second Accounting Cycle 50
Boston Burr Ridge, IL Dubuque, IA Madison, Wl New York San Francisco St. Louis Bangkok Bogota Caracas Kuala Lumpur Lisbon London Madrid Mexico City Milan Montreal New Delhi Santiago Seoul Singapore Sydney
More informationIntroduction to Managerial Accounting and Job Order Cost Systems p. 1 The Differences Between Managerial and Financial Accounting p.
Introduction to Managerial Accounting and Job Order Cost Systems p. 1 The Differences Between Managerial and Financial Accounting p. 2 The Management Accountant in the Organization p. 4 Manufacturing Cost
More information2 Cost Concepts in Decision Making
2 Cost Concepts in Decision Making LEARNING OBJECTIVES : After studying this unit you will be able to : Understand the meaning and prerequisites of relevant costs. Learn and apply the opportunity cost
More informationPELLISSIPPI STATE TECHNICAL COMMUNITY COLLEGE MASTER SYLLABUS COST ACCOUNTING ACC 2360
PELLISSIPPI STATE TECHNICAL COMMUNITY COLLEGE MASTER SYLLABUS COST ACCOUNTING ACC 2360 Class Hours: 3.0 Credit Hours: 3.0 Laboratory Hours: 0.0 Revised: Fall 04 NOTE: This course is NOT designed for transfer
More informationAnalyzing Project Cash Flows. Chapter 12
Analyzing Project Cash Flows Chapter 12 1 Principles Applied in This Chapter Principle 3: Cash Flows Are the Source of Value. Principle 5: Individuals Respond to Incentives. 2 Learning Objectives 1. Identify
More informationChapter 6 Capital Budgeting
Chapter 6 Capital Budgeting The objectives of this chapter are to enable you to: Understand different methods for analyzing budgeting of corporate cash flows Determine relevant cash flows for a project
More informationAccounting for Management: Concepts & Tools v.2.0- Course Transcript Presented by: TeachUcomp, Inc.
Accounting for Management: Concepts & Tools v.2.0- Course Transcript Presented by: TeachUcomp, Inc. Course Introduction Welcome to Accounting for Management: Concepts and Tools, a presentation of TeachUcomp,
More informationManagerial Accounting (ACC 212) Uses of Accounting Information II (ACC 240)
Managerial Accounting (ACC 212) Uses of Accounting Information II (ACC 240) Final Exam Review 1) Beginning Raw Materials Inventory $ 3,000 Ending Raw Materials Inventory 4,500 Purchases of Raw Materials
More informationDisclaimer: This resource package is for studying purposes only EDUCATIO N
Disclaimer: This resource package is for studying purposes only EDUCATIO N Chapter 9: Budgeting The Basic Framework of Budgeting Master budget - a summary of a company s plans in which specific targets
More informationBefore discussing capital expenditure decision methods, we may understand following three points:
J B GUPTA CLASSES 98184931932, drjaibhagwan@gmail.com, www.jbguptaclasses.com Copyright: Dr JB Gupta Chapter 7 Capital Budgeting (Capital Expenditure decisions) Chapter Index Method Based on Accounting
More informationMGT402 Short Notes Lecture 23 to 45 By
MGT402 Short Notes Lecture 23 to 45 By http://vustudents.ning.com Lec # 23 PROCESS COSTING SYSTEM (Opening balance of work in process) Two methods of cost allocation (1) The weighted average (or averaging)
More informationAnswer to PTP_Intermediate_Syllabus 2008_Jun2015_Set 1
Paper 8: Cost & Management Accounting Time Allowed: 3 Hours Full Marks: 100 Question No 1 is Compulsory. Answers any five Questions from the rest. Working Notes should form part of the answer. Question.1
More informationInvestment Appraisal
Investment Appraisal Introduction to Investment Appraisal Whatever level of management authorises a capital expenditure, the proposed investment should be properly evaluated, and found to be worthwhile
More informationPrinciples of Managerial Finance Solution Lawrence J. Gitman CHAPTER 10. Risk and Refinements In Capital Budgeting
Principles of Managerial Finance Solution Lawrence J. Gitman CHAPTER 10 Risk and Refinements In Capital Budgeting INSTRUCTOR S RESOURCES Overview Chapters 8 and 9 developed the major decision-making aspects
More informationIntroduction to Capital Budgeting
Introduction to Capital Budgeting Pamela Peterson, Florida State University O U T L I N E I. Introduction II. The investment problem III. Capital budgeting IV. Classifying investment projects V. Cash flow
More informationINTERMEDIATE EXAMINATION
INTERMEDIATE EXAMINATION GROUP II (SYLLABUS 2008) SUGGESTED ANSWERS TO QUESTIONS DECEMBER 2011 Paper-8 : COST AND MANAGEMENT ACCOUNTING Time Allowed : 3 Hours Full Marks : 100 The figures in the margin
More informationIntroduction to Capital
Introduction to Capital What is Capital? Money invested in business to generate income The money, property, and other valuables which collectively represent the wealth of an individual or business The
More informationFINALTERM EXAMINATION. Spring MGT402- Cost & Management Accounting (Session - 2)
FINALTERM EXAMINATION Spring 2009 MGT402- Cost & Management Accounting (Session - 2) Question No: 1 ( Marks: 1 ) - Please choose one All of the following indicate the problems in traditional budget EXCEPT:
More informationMEGA Brands Inc. Consolidated Financial Statements December 31, 2012 and 2011 (in thousands of US dollars)
MEGA Brands Inc. Consolidated Financial Statements December 31, 2012 and 2011 (in thousands of US dollars) Report Independent Auditor s Report To the Shareholders of MEGA Brands Inc. We have audited the
More informationTHIS CHAPTER COMPRISES OF
Star Rating On the basis of Maximum marks from a chapter On the basis of Questions included every year from a chapter On the basis of Compulsory questions from a chapter CHAPTER Nil 1 Basic Concepts THIS
More informationManagerial Accounting (ACC 212) Uses of Accounting Information II (ACC 240)
Managerial Accounting (ACC 212) Uses of Accounting Information II (ACC 240) Final Exam Review 1) Beginning Raw Materials Inventory $ 1 Ending Raw Materials Inventory 3 Purchases of Raw Materials 6 Direct
More informationMEGA Brands Inc. Consolidated Financial Statements December 31, 2013 and 2012 (in thousands of US dollars)
MEGA Brands Inc. Consolidated Financial Statements December 31, 2013 and 2012 (in thousands of US dollars) Independent Auditor s Report To the Shareholders of MEGA Brands Inc. We have audited the accompanying
More informationA Refresher Course on Current Financial Reporting Standards 2013 (Day 4)
A Refresher Course on Current Financial Reporting Standards 2013 (Day 4) Impairment of assets 1 COOPERATION REQUESTED Please make sure that your mobile phones and pagers have been switched off or turned
More informationManagerial Accounting (ACC 212) Uses of Accounting Information II (ACC 240)
Managerial Accounting (ACC 212) Uses of Accounting Information II (ACC 240) Final Exam Review 1) Beginning Raw Materials Inventory $ 1,000 Ending Raw Materials Inventory 2,500 Purchases of Raw Materials
More informationProduct costing (process costing) In Class Exercise
Product costing (process costing) In Class Exercise makes stained glass lamps. Production process uses two departments: cutting department and assembly department where they are put together. Record the
More informationCourse # Cost Management : Accounting and Control
Course # 171023 Cost Management : Accounting and Control based on the electronic.pdf file(s): Cost Management : Accounting and Control by: Dr. Jae K. Shim, Ph.D., 2009, 306 pages 20 CPE Credit Hours Accounting
More informationBFC2140: Corporate Finance 1
BFC2140: Corporate Finance 1 Table of Contents Topic 1: Introduction to Financial Mathematics... 2 Topic 2: Financial Mathematics II... 5 Topic 3: Valuation of Bonds & Equities... 9 Topic 4: Project Evaluation
More informationWeek 5, Chap3 Accounting 1A, Financial Accounting. Instructor: Michael Booth
Week 5, Chap3 Accounting 1A, Financial Accounting Instructor: Michael Booth Business Background How do business activities affect the income statement? How are these activities recognized and measured?
More informationChapter 8. Fundamentals of Capital Budgeting
Chapter 8 Fundamentals of Capital Budgeting Chapter Outline 8.1 Forecasting Earnings 8.2 Determining Free Cash Flow and NPV 8.3 Choosing Among Alternatives 8.4 Further Adjustments to Free Cash Flow 8.5
More informationAppendix. IPCC Gr. I (Solution of May ) Paper - 3A : Cost Accounting
Solved Scanner Appendix IPCC Gr. I (Solution of May - 2015 ) Paper - 3A : Cost Accounting Chapter - 1: Basic Concepts 2015 - May [5] (a) Sunk Cost: Sunk costs are historical costs incurred in the past
More informationTotal number of machine hours expected to be utilised = 0,75 x =
COSTING LECTURE EXAMPLE SUGGESTED SOLUTIONS COST ASSIGNMENT LE1: Allocation rate based on units Overhead allocation rate = R960 000 / 120 000 = R8,00 per unit Total amount absorbed in WIP = R8,00 x 100
More informationMGT402 - COST & MANAGEMENT ACCOUNTING
MGT402 - COST & MANAGEMENT ACCOUNTING Lesson No. TOPICS Page No. 1 Cost Classification and Cost Behavior 1 2 Important Terminologies 11 3 Financial Statements 15 4 Financial Statements (Continued)....
More informationCapítulo 6 Managerial Accounting and Cost Concepts
Capítulo 6 Managerial Accounting and Concepts Exercise 1-1 (15 minutes) Object Direct 1. The wages of pediatric nurses The pediatric department 2. Prescription drugs A particular patient 3. Heating the
More informationCHAPTER 4. Income Statement and Related Information 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 32, 35 12, 13, 14, 23, 25 12, 14, 15, 16, 19, 20
CHAPTER 4 Income Statement and Related Information ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics Questions Brief Exercises Exercises Problems Concepts for Analysis 1. Income measurement concepts. 1,
More informationOLD ASSETS NEVER DIE. Net Productivity
OLD ASSETS NEVER DIE In fact, of course, few assets are immortal. For practical purposes, this may be the case for, land, but most other forms of assets become physically inoperable over time and must
More informationAGENDA: MANAGEMENT ACCOUNTING
14-1 Management Accounting Tutorial 8 (, chapter 13, 14, 1, 2, 3) Mid Module Review Bangor University Transfer Abroad Programme 1. Globalization. 2. Strategy. 3. Organizational structure. 4. Process management.
More informationAccounting 2. For Professor Howard J. Levine
Accounting 2 Chapters 12 to 26 Class Handouts For Professor Howard J. Levine Note: This packet should be brought to class every week. If you forget or misplace it you can reprint the set by going to the
More informationIndex COPYRIGHTED MATERIAL
A ABC (activity-based costing). See also costs; peanut butter costing allocating indirect costs, 77 78 allocations to cost pools, 79 analyzing cost activities, 78 79 applying to bottlenecks, 353 applying
More informationThe Capital Expenditure Decision
1 2 October 1989 The Capital Expenditure Decision CONTENTS 2 Paragraphs INTRODUCTION... 1-4 SECTION 1 QUANTITATIVE ESTIMATES... 5-44 Fixed Investment Estimates... 8-11 Working Capital Estimates... 12 The
More informationChapters 1-4 (Part One)
Profession of Accounting Chapters 1-4 (Part One) The accounting profession is varied. It includes private accounting, where accountants work for their clients (e.g., Controllers). It also includes public
More informationMany decisions in operations management involve large
SUPPLEMENT Financial Analysis J LEARNING GOALS After reading this supplement, you should be able to: 1. Explain the time value of money concept. 2. Demonstrate the use of the net present value, internal
More informationKey Expense Assumptions
Key Expense Assumptions 204 The operating expenses are assumed to be 60% of the revenues at the parks, and 75% of revenues at the resort properties. Disney will also allocate corporate general and administrative
More informationDr. M.D. Chase Accounting 610 Examination 1 Chapters 1-8,11 Horngren et.al. 15 th. Spring 2011
Exam No: Dr. M.D. Chase Accounting 610 Examination 1 Chapters 1-8,11 Horngren et.al. 15 th Spring 2011 Business ethics are the cornerstone of a successful free enterprise economy. Personal ethics are the
More informationCAPITAL BUDGETING PRACTICE PROBLEMS. Self-Study Question
CAPITAL BUDGETING PRACTICE PROBLEMS Self-Study Question Nu-Concepts, Inc., a southeastern advertising agency, is considering the purchase of new computer equipment and software to enhance its graphics
More informationSU 3.1 Property, Plant, and Equipment
Part 1 Study Unit 3 SU 3.1 Property, Plant, and Equipment Overview Property, plant and equipment are also referred to as fixed assets, or capital assets. Last more than 1 year. Are for production or benefit
More informationMOCK TEST PAPER INTERMEDIATE (IPC): GROUP I PAPER 3: COST ACCOUNTING AND FINANCIAL MANAGEMENT
MOCK TEST PAPER INTERMEDIATE (IPC): GROUP I PAPER 3: COST ACCOUNTING AND FINANCIAL MANAGEMENT Test Series: March 2018 Answers are to be given only in English except in the case of the candidates who have
More informationFixed predetermined manufacturing overhead absorption rate = $450,000/50,000 = $9 per machine hours
Cost-volume-profit analysis HKDSE (2016, 3) (Cost-Volume-profit analysis) Thomson Company computes its annual predetermined manufacturing overhead absorption rate on the basis of machine hours. In December
More informationSTATE UNIVERSITY OF NEW YORK COLLEGE OF TECHNOLOGY CANTON, NEW YORK COURSE OUTLINE ACCT 104 SURVEY OF ACCOUNTING
STATE UNIVERSITY OF NEW YORK COLLEGE OF TECHNOLOGY CANTON, NEW YORK COURSE OUTLINE ACCT 104 SURVEY OF ACCOUNTING Prepared By: Dr. Brian Trill SCHOOL OF BUSINESS & LIBERAL ARTS BUSINESS DEPARTMENT APRIL
More informationP. V. V I S W A N A T H W I T H A L I T T L E H E L P F R O M J A K E F E L D M A N F O R A F I R S T C O U R S E I N F I N A N C E
1 P. V. V I S W A N A T H W I T H A L I T T L E H E L P F R O M J A K E F E L D M A N F O R A F I R S T C O U R S E I N F I N A N C E 2 The objective of a manager is to maximize NPV of cash flows and is
More informationCost Accounting: A Managerial Emphasis, 16e, Global Edition (Horngren) Chapter 4 Job Costing
Cost Accounting: A Managerial Emphasis, 16e, Global Edition (Horngren) Chapter 4 Job Costing 4.1 Objective 4.1 1) A cost is considered direct if it can be traced to a particular cost object in a cost effective
More informationACCTG101 Revision MODULES 10 & 11 LITTLE NOTABLES EXCLUSIVE - VICKY TANG
ACCTG101 Revision MODULES 10 & 11 TIME VALUE OF MONEY & CAPITAL INVESTMENT MODULE 10 TIME VALUE OF MONEY Time Value of Money is the concept that cash flows of dollar amounts have different values at different
More informationChapter 021 Credit and Inventory Management
Multiple Choice Questions 1. The conditions under which a firm sells its goods and services for cash or credit are called the: A. terms of sale. b. credit analysis. c. collection policy. d. payables policy.
More informationSCHOOL OF ACCOUNTING AND BUSINESS BSc. (APPLIED ACCOUNTING) GENERAL / SPECIAL DEGREE PROGRAMME
No. of Pages - 15 No of Questions -07 SCHOOL OF ACCOUNTING AND BUSINESS BSc. (APPLIED ACCOUNTING) GENERAL / SPECIAL DEGREE PROGRAMME YEAR I SEMESTER II (Group A) END SEMESTER EXAMINATION DECEMBER 2014
More information;,CENGAGE Learning* Australia Brazil»Japan Korea «Mexico Singapore Spain United Kingdom United States
COLIN MANAGEMENT AND COST ACCOUNTING NINTH EDITION ;,CENGAGE Learning* Australia Brazil»Japan Korea «Mexico Singapore Spain United Kingdom United States CONTENTS Preface x About the author xvi Acknowledgements
More informationMANAGEMENT INFORMATION
CERTIFICATE LEVEL EXAMINATION SAMPLE PAPER 1 (90 MINUTES) MANAGEMENT INFORMATION This assessment consists of ONE scenario based question worth 20 marks and 32 short questions each worth 2.5 marks. At least
More informationWeek 5, Chap3 Accounting 1A, Financial Accounting. Instructor: Michael Booth
Week 5, Chap3 Accounting 1A, Financial Accounting Instructor: Michael Booth Business Background How do business activities affect the income statement? How are these activities recognized and measured?
More informationCorporate Finance Primer
Chartered Professional Accountants of Canada, CPA Canada, CPA are trademarks and/or certification marks of the Chartered Professional Accountants of Canada. 2018, Chartered Professional Accountants of
More informationCHAPTER 6 MAKING CAPITAL INVESTMENT DECISIONS
CHAPTER 6 MAKING CAPITAL INVESTMENT DECISIONS Answers to Concepts Review and Critical Thinking Questions 1. In this context, an opportunity cost refers to the value of an asset or other input that will
More informationALL IN ONE MGT 402 MIDTERM PAPERS MORE THAN ( 10 )
ALL IN ONE MGT 402 MIDTERM PAPERS MORE THAN ( 10 ) MIDTERM EXAMINATION MGT402- Cost & Management Accounting Question No: 1 ( Marks: 1 ) - Please choose one D Corporation uses process costing to calculate
More informationChapter 14 Solutions Solution 14.1
Chapter 14 Solutions Solution 14.1 a) Compare and contrast the various methods of investment appraisal. To what extent would it be true to say there is a place for each of them As capital investment decisions
More informationFree of Cost ISBN : Scanner Appendix. CS Executive Programme Module - I December Paper - 2 : Cost and Management Accounting
Free of Cost ISBN : 978-93-5034-831-4 Solved Scanner Appendix CS Executive Programme Module - I December - 2013 Paper - 2 : Cost and Management Accounting Chapter - 1: Introduction to Cost and Management
More informationFinal Examination Booklet. Managerial Accounting
Final Examination Booklet Managerial Accounting Managerial Accounting Note: You should complete all lesson exams before you take the final exam. Complete the following exam by answering the questions and
More informationCHAPTER 6 MAKING CAPITAL INVESTMENT DECISIONS
CHAPTER 6 MAKING CAPITAL INVESTMENT DECISIONS Answers to Concepts Review and Critical Thinking Questions 1. In this context, an opportunity cost refers to the value of an asset or other input that will
More informationFinancing new business ventures, financial information and management. Prepared by: Intan Nazuha bt Abdullah 1
Financing new business ventures, financial information and management 1 What is Financing? Is the study of how people allocate their assets over time under conditions of certainty and uncertainty. Finance
More informationCHAPTER 24 NON FINANCIAL ASSETS
INVENTORY (IAS 2) OBJECTIVE CHAPTER 24 NON FINANCIAL ASSETS The primary issues in accounting for inventories are: - a) the amount to be recognized as an asset and carried forward until the revenues are
More informationPELLISSIPPI STATE COMMUNITY COLLEGE MASTER SYLLABUS PRINCIPLES OF ACCOUNTING I ACC 2000
PELLISSIPPI STATE COMMUNITY COLLEGE MASTER SYLLABUS PRINCIPLES OF ACCOUNTING I ACC 2000 Class Hours: 3.0 Credit Hours: 3.0 Laboratory Hours: 0.0 Date Revised: Fall 09 * Intended for transfer. Catalog Course
More informationOverhead allocation rate = R / = R10,80 per machine hour
COSTING DAY 1 LECTURE EXAMPLE SUGGESTED SOLUTIONS COST ASSIGNMENT LE1: Allocation rate based on units Overhead allocation rate = R960 000 / 120 000 = R8,00 per unit Total amount absorbed in WIP = R8,00
More informationJEFFERSON COLLEGE COURSE SYLLABUS BUS 241 MANAGERIAL ACCOUNTING. 3 Credit Hours. Prepared by: Mary E. Baricevic March 30, 2014
JEFFERSON COLLEGE COURSE SYLLABUS BUS 241 MANAGERIAL ACCOUNTING 3 Credit Hours Prepared by: Mary E. Baricevic March 30, 2014 Ms. Linda Abernathy, Math, Science and Business Division Chair Ms. Shirley Davenport,
More informationREVIEW FOR FINAL EXAM, ACCT-2302 (SAC)
1. Types of Cost Classification REVIEW FOR FINAL EXAM, ACCT-2302 (SAC) CHAPTER 16 a. By Behavior: (1) Variable Cost - constant per unit, changes proportionally with volume. (2) Fixed Cost - fixed in total
More information1 THIS CHAPTER COMPRISES OF
Star Rating On the basis of Maximum marks from a chapter On the basis of Questions included every year from a chapter On the of Compulsory questions from a chapter CHAPTER Nil 1 THIS CHAPTER COMPRISES
More informationAdditional Lecture Notes
Additional Lecture Notes Lecture 3: Information, Options, & Costs Overview The purposes of this lecture are (i) to determine the value of information; (ii) to introduce real options; and (iii) begin our
More informationCHAPTER 2 CONCEPTUAL FRAMEWORK FOR FINANCIAL REPORTING. IFRS questions are available at the end of this chapter. TRUE-FALSE Conceptual
CHAPTER 2 CONCEPTUAL FRAMEWORK FOR FINANCIAL REPORTING IFRS questions are available at the end of this chapter. TRUE-FALSE Conceptual Answer No. Description T 1. Nature of conceptual framework. T 2. Conceptual
More information1 THIS CHAPTER COMPRISES OF
Star Rating On the basis of Maximum marks from a chapter On the basis of Questions included every year from a chapter On the basis of Compulsory questions from a chapter CHAPTER Nil Nil 1 THIS CHAPTER
More informationExamination. Question 1:
Question 1: At an activity level of 8,800 units, Pember Corporation's total variable cost is $146,520 and its total fixed cost is $219,296. For the activity level of 8,900 units, compute the following
More informationLahore University of Management Sciences. ACCT 130 Principles of Management Accounting Fall Semester 2016
ACCT 130 Principles of Management Accounting Fall Semester 2016 Instructor Room No. Office Hours Email Telephone Secretary/TA TA Office Hours Course URL (if any) Ahsan Shamim Chaudhri / Ayesha Bhatti /
More informationChapter 8. Capital Budgeting Cash Flow
Chapter 8 Capital Budgeting Cash Flow Learning Goals 1. Understand the motives for key capital budgeting expenditures and the steps in the capital budgeting process. 2. Define basic capital budgeting terminology.
More informationIE463 Chapter 5. Depreciation. Depreciable Property. Basic Terminology STRAIGHT-LINE (SL) METHOD DEPRECIATION AND INCOME TAXES
Depreciation IE463 Chapter 5 DEPRECIATION AND INCOME TAXES Depreciation is the decrease in the value of physical properties with passage of time Because, depreciation is a non-cash cost that affects income
More informationTime Value of Money. PV of Multiple Cash Flows. Present Value & Discounting. Future Value & Compounding. PV of Multiple Cash Flows
Chapter 4-6 Time Value of Money Net Present Value Capital Budgeting Konan Chan Financial Management, 2018 Time Value of Money Present values Future values Annuity and Perpetuity APR vs. EAR Five factor
More informationChapter 4-6 Time Value of Money Net Present Value Capital Budgeting. Konan Chan Financial Management, Time Value of Money
Chapter 4-6 Time Value of Money Net Present Value Capital Budgeting Konan Chan Financial Management, 2018 Time Value of Money Present values Future values Annuity and Perpetuity APR vs. EAR Five factor
More informationLahore University of Management Sciences. ACCT 130 Principles of Management Accounting Fall Semester 2017 Waqar Ali, Omair Haroon, Ayesha Bhatti
ACCT 130 Principles of Management Accounting Fall Semester 2017 Instructor Waqar Ali, Omair Haroon, Ayesha Bhatti Room No. TBA Office Hours TBA Email Waqar_ali@lums.edu.pk, Omair.haroon@lums.edu.pk, Ayesha.bhatti@lums.edu.pk
More informationREVIEW FOR SECOND QUIZ. Show me the money
REVIEW FOR SECOND QUIZ Show me the money The skill set for this test Can you compute the cost of capital for a project (rather than a firm)? How do you estimate the cost of equity for a project? What debt
More informationFinancial Statement Analysis for the Boardroom. An Attorney s Guide September 13, 2017
Financial Statement Analysis for the Boardroom An Attorney s Guide September 13, 2017 Contact information For more information, please contact one of the following members of the engagement team: Marc
More informationaccounts receivable: dollar amount due from customers from sales made on open account.
GLOSSARY 1 above-the-line: income items related to core operations. Typically assumed to have high predictive power for future earnings. accrual accounting: system of accounting that purports to measure
More informationBLUESCOPE STEEL LIMITED FINANCIAL REPORT 2011/2012
BLUESCOPE STEEL LIMITED FINANCIAL REPORT / ABN 16 000 011 058 Annual Financial Report - Page Financial statements Statement of comprehensive income 2 Statement of financial position 3 Statement of changes
More information