The four criteria managers use are:
Legality
Economic feasibility
Practicality
Ethicalness
When evaluating the operating efficiency of a firm's managers, you would look at the Asset Evaluation Ratio.
things that banks consider before giving out loans
When considering financing, managers may consider the payback period and the interest rate. They will also consider how the debt will affect their cash flow.
Profitability index criteria can be used to select projects when a capital rationing situation exists, with the highest profititibility index from specified projects being the goal.
Budget helps to aid the planning of actual operations by forcing managers to consider how the conditions might change and what steps should be taken now and by encouraging managers to consider problems before they arise. It also helps co-ordinate the activities of the organization by compelling managers to examine relationships between their own operation and those of other departments. Other essentials of budget include:To control resourcesTo communicate plans to various responsibility center managers.To motivate managers to strive to achieve budget goals.To evaluate the performance of managersTo provide visibility into the company's performance
When evaluating the operating efficiency of a firm's managers, you would look at the Asset Evaluation Ratio.
Consulting
Installation Bioenvironmental Engineering (BE)
The best way to make a decision is by performing a loss-profit analysis. Managers and economists know to choose that option which tends to maximize their profit or minimize their loss, relative to the other choices.
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things that banks consider before giving out loans
Answer this question...why do managers cosider direct costs to be more accurate than indirect costs?
Managers direct the work of the business by applying leadership and management skills. They model desired behavior while supervising, motivating, and evaluating their employees.
Cost accounting is generally used by managers of a company to help them make decisions.Cost accounting is regarded as the process of collecting, analysing, summarizing and evaluating various alternative courses of action involving costs and advising the management on the most appropriate course of action based on the cost efficiency and capability of the management.The lower the cost the higher the retained earnings, the better a company is doing. Managers can use this information when hiring/firing, expanding, or even reducing their business.
Recent studies have been conducted that show that most managers are ineffective. The study defined effectiveness as "decisive and purposeful action". Only 10% fit the criteria, leaving 90% to be considered ineffective.
Supply Chain Management