customer loyalty‚ and perhaps most importantly‚ human capital. These intangible assets are likely to provide tremendous earnings growth in the future which determines the company’s market value. Notice also that the company’s choice of conservative accounting policies has the effect of depressing the company’s book value of equity. 2. What effect did Microsoft’s software capitalization policy have on its financial statements? Ignore any potential tax effects. a. Assume that 60% of Microsoft’s
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MBA 520: Managerial Accounting Performance Measurement at Lipton: Evaluation and Recommendations ------------------------------------------------- Nick Arens Chris Lance Ryan Moore Rob Sloan Summary We at ALMS Consulting Co. have been hired to analyze the way product lines and product managers are being evaluated at the Thomas J. Lipton‚ Incorporated (“Lipton” or the “Company”) entity. We will review the performance metrics utilized at the corporate level of Lipton‚ explain
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subject of Strategic Management Accounting‚ defined it as‚ "a form of management accounting in which emphasis is placed on information which relates to factors external to the firm‚ as well as non-financial information and internally generated information." Ward (1992) defines it as‚ “strategic management is an integrated management approach that draws together all the individual elements involved in planning‚ implementing and controlling business strategy” For management accounting must help accomplish
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Introduction to Cost and Management Accounting Lecturer: Nadini Persaud Contact Information: Email: nadini.persaud@cavehill.uwi.edu npersaud07@yahoo.com Office Location: Upstairs Main Library Tel: 417-4296 (DOMS General Office) 417-4297 (NP Office) March 2nd 2013 mid-term exam Contents Decision Making 3 Theory of Constraints 4 IMA Guidelines for Ethical Behavior 4 Competence 4 Confidentiality 5 Integrity 5 Credibility 5 Corporate Social Responsibility
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Fundamentals of Cost and Management Accounting Part Four: Allocation of Support Department Costs‚ Common Costs and Revenues Exercise No. 4 الاسم: الرقم الأكاديمي: رقم الشعبة: Choose the best answer for every question of the following questions: 1) Max’s Movie Store encounters revenue-allocation decisions with its bundled product sales. Here‚ two or more of the movie videos are sold as a single package. Managers
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Electric utility bills. When an electric utility customer uses electricity‚ the electric company has earned revenues. It is obviously impossible‚ however‚ for the company to read all of its customers’ meters on the evening of December 31. How does the electric company know its revenue for a given year? Explain. According to historical data‚ the electricity usage usually tended to be fairly constant from month to month. The company can estimate the revenues for each month‚ by using historical data
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Significant Management Estimation Identifying balances based on significant management estimation techniques Inherent Risk associated with Estimation Accounts involving significant management estimation viewed as inherently risky Auditor’s responsibilities for examining management-generated estimates AU Section 342 AU Section 342‚ Auditing Accounting Estimates‚ provides auditors guidance on gathering and evaluating sufficient appropriate audit evidence to support significant accounting estimates
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Chapter 2 Job Order Costing TRUE/FALSE 1. Cost accounting systems are used to supply cost data information on costs incurred by a manufacturing process or department. ANS: T 2. A manufacturer may employ a job order cost system for some of its products and a process cost system for others. ANS: T 3. A job order cost accounting system provides for a separate record of the cost of each particular quantity of product that
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Subject : Financial Accounting Ⅱ Lease agreement between NeedsLease and HasSpace NeedsLease is renting a space for its corporate office from HasSpace by entering into a lease agreement. The agreed lease term is for 10 years and there is no option to renew nor is the ability to negotiate renewal of the term. According to ASC 840 (5F of statement 13)‚ the lease is classified as operating lease. The agreement includes two provisions that may require NeedsLease to perform certain activities at its
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Theory Accounting Case 8.1 Simon Romario (023121023) Purwanto Gozali (02312132) Endah Puspitasari (023121065) 1. The article states that the US standard setter FASB requires companies to record a provision in relation to environmental cost of retiring assets (to reserve environmental liabilities) if its fair value could be reasonably estimated. How do you think companies would go about estimating such a provision? Estimation (or estimating) is the process of finding an estimate
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