~The decision about which assets to buy is termed the capital buygeting or inverstment decision. The cesision about how to raise money is the financing decision.
Capital budgeting is related with the investments decisions which has to be made in long-term fixed assets and working capital management. Capital structure is related with the financing decisions regarding the debt and equity combinations,in which proportion debt and equity has to be maintained.
Capital budgeting is related with the investments decisions which has to be made in long-term fixed assets and working capital management. Capital structure is related with the financing decisions regarding the debt and equity combinations,in which proportion debt and equity has to be maintained.
) Distinguish clearly between analysis of variance and analysis of covariance.
By budgeting, you can have a semblance between your income and projected expenditure during a specified period.This is of paramount importance than sailing a rudderless boat in the sea.
system features focus on advantages disadvantages (LIBS) -centered on objectives/nature of expenditure or purchased item/service (1920~30s) -control financial affairs -responsibility for accounting -clear responsibility on accounting -easier control on financing -rigidity -unclear performance/objective of expenditure performance budgeting system (PBS) -classifying business based on functions of business activities -detail business budget=item price*work hour -Truman(1950) -business centered -management centered -clear business goal -flexibility -unclear responsibility on accounting plan programming budgeting system(PPBS) -planning+budgeting -rational allocation of resources -Johnson(1965) planning centered "planningprogrammingbudgeting" -planning+budget -rational allocation of resources -remove barriers between organizations centralization of budget composition -difficulties on conversion work -top-down budget composition
Capital budgeting is related with the investments decisions which has to be made in long-term fixed assets and working capital management. Capital structure is related with the financing decisions regarding the debt and equity combinations,in which proportion debt and equity has to be maintained.
arr is for 1year only..irr can be for a period of 1 or more years
how can you distinguish between them
Capital budgeting is related with the investments decisions which has to be made in long-term fixed assets and working capital management. Capital structure is related with the financing decisions regarding the debt and equity combinations,in which proportion debt and equity has to be maintained.
distinguish between book keeping and accounting
when you know all information about alternatives and the best chosen one is certainty when you donot know all information is uncertainty
what is distinguish between bookkeeping and accounting? what is distinguish between bookkeeping and accounting? what is distinguish between bookkeeping and accounting?
Distinguish Between Accounting Convention And Aoncept
1. poor alignment between strategy and capital budgeting 2.deficiencies in analytical techniques 3.no linkage between compensation and financial measure 4.reverse financial engineering 5.weak integration between capital budgeting and expense budgeting 6.inadequate post-audit. answers given by Shailesh sharma.
Suggest you look at the CIMA website for excellent resource material on budgeting www.cimaglobal.com go to resources and search from there
The activity based budgeting will give a percentage of the budget to the sections that are the most used. Traditional just splits it all up evenly.
Short term... budgeting from one pay-day to the next. Medium term... budgeting for a larger expense (such as a holiday) Long term... budgeting for a very big expense (ie a car or house)