Budgeting and Forecasting

Computers are used in business to:

1. Keep Records of peoples pay and parsonal details

2. View new orders over the internet and contact warehouse to despatch them

3. Collecting payments from costumers, View new stock and calculating Pofit/loss of company. (without computers people would spend more time calculating this)

Batch level activity defines the costs that are incurred when a new product batch begins production in a company. Financial managers, who understand the costs of running batches, may choose to manipulate the costs by running longer batches to cut costs. Understanding the costs of batch production also assures more accurate end product pricing.

Whilst the aim of budgets is not to motivate, there seems to be a link to staff motivation which springs from budget related issues. For instance, an organisation might provide a reward scheme for the sole purpose of lifting morale - staff motivation - but a scheme such as this would be impossible to implement if the budget does not allow for it. In that case, what led to staff motivation is actually directly or indirectly related to budget. Roland A. (I've got an assignment on this actually!)

its easy lol 1.650 000 its four 0s

if you recored revenue expediture as capital expediture your profit will be decrease by that amount

There are many forms of liabilities, they should be recognised when they are able to be reliably measured and are certain. They can be categorized into Current and Non-Current depending on the operating cycle of the business (typically anything beyond 12months is non-current). A liability is an obligation on the part of the business resulting from a past transaction that requires a future outflow of resources. Some examples include: Accounts Payable Notes Payable Bank Loan Interest Payable Salaries Payable Employee Deductions Payable Unearned Revenue A + L = OE Accounts must balance to that equation.

5 disadvantages of participative budgets

Inventory at start-up is a capital contribution of the owners, actual costs, not market values.

Major conflicts will usually happen between: * Budget - i.e. cost * Time to finish * Manpower * Feature set

The process of decreasing a company's shareholder equity through share cancellations and share repurchases. The reduction of capital is done by companies for numerous reasons including increasing shareholder value and producing a more efficient capital structure. After a capital reduction, the number of shares in the company will decrease by the reduction amount. In some capital reductions, shareholders will receive a cash payment for shares cancelled - but, in other situations, there is minimal impact on shareholders. Source: Investopedia

cross functional decision making describes decisions for a common goal by integrated units of organization

An investment center helps to advice customers on the importance of investing and provides advice on investments. The disadvantage is that it can lack inconsistency across all the divisions.

what are the various classification of cost accounting?

Cost accountants are responsible for establishing budgets for the organization. They also assign predetermined overhead rates for product, so that the business doesn't take a loss when they sell the product.

what are the usefulness of high low method

Japtj

Primary is the part that originally has all of the supplies, such as the distributor. The secondary would be the store that is selling the products.

Gross Profit Margin = Gross Profit/Revenues Net Profit Margin = Net Profit/Revenues

Capital Items = Items of lasting value (expected life > 1 year). (Assets)

Expense Items = Consumable items whose lasting value is expected to be <1 year.

Capitalizing an item simply means it is accounted for as an asset, on the balance sheet.

The high-low method can be used to compute the variable cost of producing a good if the total variable cost is unknown.

The high-low method requires knowledge of the total costs of producing goods, in two different time periods. These totals include fixed costs, so the "variable cost" is still unknown.

For example:

In month one, 7000 units were produced at a cost of $5000.
In month two, 8000 units were produced at a cost of $5500.

Here is the high-low method: Divide the difference in cost by the difference in production to get the variable cost per unit.

(5500 - 5000) / (8000 - 7000) = $0.50 per unit.

The fixed cost can now be computed. $5000 - $0.50 x 7000 = $1500.
Alternatively: $5500 - $0.50 x 8000 = $1500.

The high-low method has been used in the example to demonstrate that a production plant has a monthly fixed cost of $1500 and has a variable cost of $0.50 for each unit produced.

Now, given any month's total production cost, the variable cost can be computed by deducting $1500 from the cost.

The method is called "high-low" because the two production periods used for the computation would, in practice, be the period with the highest level of production and the period with the lowest level of production.

Total contribution is .. When more than one unit is sold, the total contribution can be calculated. You work it out by: total revenue minus total variable = total contribution eg. 1,000 pair of trousers, variable costs are £7.50 per pair, sold at £9.00 per pair. = total contribution total revenue - total variable cost = (£9.00 x 1,000) - (£7.50 x 1,000) = 9,000 - 7,500 = £1,500 This £1,500 will contribute to the companies fixed costs & profit. Another way of working out the total contribution would be multiplying the unit contribution by the number of units sold. = total contribution unit contribution x number of units sold = (£9.00 - £7.50) x 1,000 = £1.50 x 1,000 = £1,500 Hope this helps :P

Flexible budget reports are another type of internal report. The flexible budget report consists of two sections: (1) production data for a selected activity index, such as direct labor hours, and (2) cost data for variable and fixed costs. The report provides a basis for evaluating a manager's performance in two areas: production control and cost control. Flexible budget reports are widely used in production and service departments.

A CPA in California makes approximately 51,000 to 53,000 dollars a year. It depends on the city they are in. Some examples are Anaheim, CPA's make 51,000 dollars a year. Berkley, they make 53,000 a year, Los Angeles they make 51,000 dollars.