Ch.24 1 In the calculation of the CPI‚ sweaters are given greater weight than jeans if a. the price of sweaters is higher than the price of jeans. b. it costs more to produce sweaters than it costs to produce jeans. c. sweaters are more readily available than jeans are to the typical consumer. d. consumers buy more sweaters than jeans. ANS: D 2 In computing the consumer price index‚ a base year is chosen. Which of the following statements about the base year is correct? a. The base year is always
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Question: Budget acts as planning and monitoring tools. Critically evaluate. A budget is a financial plan for the future concerning the revenues and costs of a business. However‚ a budget is about much more than just financial numbers. Without a budget‚ the business owner is literally shooting in the dark when it comes to trying to plan expenditures for the business and match them to sales revenue. Budget is not only a plan of action for a business; it is also a tool for monitoring performance
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Item Amount Amount Annual cash savings (make vs buy) $72‚540 0.65 $47‚151 * Tax effect on Annual Cash Savings is 1 - tax rate Tax savings due to depreciation $32‚000 0.35 $11‚200 * Tax effect on Depreciation is the tax rate Total annual cash flow $58‚351.00 Initial investment/ Annual Cash Saving $200‚000/ $58351= 3.4 years Annual cash savings (before tax effect) $72‚540
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MECH 8250 – Building Systems Module 1 - Heating Load Calculations Module 1 Heating Load Calculations The amount of heat is required for the building heating system to maintain a balance of the building heat loss. The amount of heat and moisture are gained from the building internal and external heat sources that is required to be removed by the building cooling system. Both heating and cooling loads form the basis in designing the HVAC systems for the building and occupied spaces to achieve both
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Tri-Cities Community Bank – A Balanced Scorecard Case By Tom Albright‚ Stan Davis‚ and Aleecia Hibbets Case A. Balanced Scorecard Development Tri-Cities Community Bank (TCCB) is located in the Midwest US and has a total of 10 branches grouped into two divisions‚ the southern division (SD) and the northern division (ND). Each division consists of five branches; each branch employs a branch president‚ branch vice-president/chief loan officer‚ customer service representatives‚ loan
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estimates of equity value are obtained by researchers while using the discounted cash flow model (CF) and the Residual income (RI) model. It recognises the inconsistencies prevalent while implementing them. Francis et al (2000) use Value line estimates for finite forecasting periods. They conclude that RI is superior to CF. Courteau et al (2000) analyse whether different valuation models are same when a terminal value calculation based on price is used. They conclude that RI is dominant to CF when terminal
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BUDGET According to CIMA ‚ Official Terminology “A budget is a financial and /or quantitative prepared prior to a defined period of time ‚ of the policy to be pursued during that period for the purpose of attaining a given objective.” In the words of Crown and Howard ‚ “ A budget is a pre- determined statement of management policy during a given period which provides a standard for comparison with the results actually achieved.” BUDGETRY CONTROL Budgetary control is the process of determining
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( http://www.accountingformanagement.com/production_budget.htm ) Production Budget: Learning Objective of the article: 1. Define and explain production budget. 2. Prepare a production budget. Definition and Explanation of Production Budget: The production budget is prepared after the sales budget. The production budget lists the number of units that must be produced during each budget period to meet sales needs and to provide for the desired ending inventory. Production needs can be
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.................................................................................................................... 17 Automatic generation of Recurring Income Entries ...................................................................... 18 The Budget
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A budget is a plan. Budgeting is generally formalized written documents. Budgeting is the process of developing a plan‚ implementing it and attempting to control outcomes so that they confirm to or exceed the result called for by the plan. Budgeting is an element of cost accounting‚ because mush of planning related to cost the organization expects to incur. 1.1 IMPORTANCE OF BUDGETS Budgeting is important process in organization. A budget process that works
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