describe what profit and loss accounts are. PROFIT AND LOSS ACCOUNT By law business are required to provide annual financial statements‚ which will appear in their company report‚ there are two main types of financial statements‚ one is balance sheet and the other is a profit and loss account. A profit and loss account is a record which can be updated regularly and generally shows businesses transactions made over a period of time (usually within 12 months)‚ An example profit and loss account
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Accuracy and Bias In general‚ a set of forecasts will be considered to be accurate if the forecast errors‚ that is‚ the set of et values which results from the forecasts‚ are sufficiently small. The next section presents statistics based on the forecast errors‚ which can be used to measure forecast accuracy. In thinking about forecast accuracy‚ it is important to bear in mind the distinction between error and noise. While related‚ they are not the same thing. Noise in the demand data is real and
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Is it possible for large‚ profit focussed organisations to be both profitable and “fair”? Over the past year there have been an increasing number of issues which have risen on how businesses such as Amazon‚ Thames Water‚ Google‚ Facebook and Starbucks have made vast amount of profits but haven’t been fair-minded. For example Starbucks made £400m sales in the UK but paid no corporation tax. According to Milton Freidman the main objective of a business is to increase profits so long as it stays within
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PROFIT MAXIMIZATION [See Chap 11] 1 Profit Maximization • A profit-maximizing firm chooses both its inputs and its outputs with the goal of achieving maximum economic profits 2 Model • Firm has inputs (z1‚z2). Prices (r1‚r2). – Price taker on input market. • Firm has output q=f(z1‚z2). Price p. – Price taker in output market. • Firm’s problem: – Choose output q and inputs (z1‚z2) to maximise profits. Where: π = pq - r1z1 – r2z2 3 1 One-Step Solution • Choose (z1
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Profits Katherine Carpenter Liberty University Econ 213 Gwartney states that profits are; “An excess of sales revenue relative to the opportunity cost of production. The cost component includes the opportunity cost of all resources‚ including those owned by the firm. Therefore‚ profit accrues only when the value of the good produced is greater than the value of the resources used for its production.” An example of a profit would be bakery offers a cheesecake for $20 and the total cost to make
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Learning Team C Smith Systems Consulting Project Plan Smith Systems Consulting Smith Systems Consulting has been at the forefront of the Information Technology Services and Consulting industry since it was founded in 1984. Their driving vision has been to provide the absolute best to their customers in all aspects of services and prices at rates that are affordable. They believe they can do this because they employ the best in the industry. Their simple approach to customer service has been
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had the objective to find hidden profits and losses contained in their current accounting system. The old system did not fully disclose how their costs were applied to the sales accounts. The goals are very sensible as they will allow them to move forward with the proper information. 2. Why did Ridderstråle feel that the previous cost system was inadequate for the new strategy? The new strategy/system was needed “to promote high-margin products to high-profit customers.” The old system didn’t
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PROBLEM ANALYSIS Starting with just 32 cows and 170 milk goats pooled by 18 farmers in Shijiazhuang‚ the Sanlu Group began its journey as a small dairy producer. The CEO of the company‚ Tian Wenhua steered the company through milk shortages and tough economic times. To meet rising demands for milk‚ she implemented a system that allowed villagers to supply Sanlu with the bulk of their raw milk supply. The demand grew at such a rapid pace that Sanlu could barely keep up and so began sacrificing
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Analysis Paper In my opinion‚ group work is a type of cooperative learning that helps people to accomplish a certain task in a faster and more effective manner. Team working also helps to achieve the tasks that are impossible to finish by one individual. However‚ if people in a group have a lot of conflicts‚ group work will not be able to achieve as much as we expected. There are many reasons which lead to dissatisfaction in group work such as individualism as well as conflicts in opinion and time
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by private individuals. Usually‚ we have organizations within the economy where one is profit oriented and its main business objective is to make profit from the revenue it tends to make by the end of a certain period‚ therefore‚ nothing from the extra money made will be used to develop the business‚ instead‚ the profit will go to the owner of the business‚ adding to that the owner can be giving some of the profit to its employees as a way of motivation according to Maslow’s hierarchy of needs which
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