Question no: 01:- Accounting profit and Economic profit. Economic Profit Implicit cost Accounting profit Explicit cost Total opportunity cost Revenue Revenue How an economist views a firm How an accountant views a firm Accounting profit equals sales revenue minus ( - ) all costs except the cost of equity capital‚ while Economic profit is sales revenue minus ( - ) all costs including the opportunity cost of equity capital. Thus economic profit may be lower than the accounting profit. If accounting
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Problem 1 A. Overhead: Department Rates Production Departments Assembly Packaging Total Overhead $216000 $50400 $720000 Direct labor hours Deluxe 10000 10000 20000 Regular 150000 10000 160000 Total DL 160000 20000 180000 Machine hours Deluxe 2000 8000 10000 Regular 8000 72000 80000 Total machine
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human resources activities as a contribution to the company’s bottom line. At all levels of the organization‚ managers and HR professionals work together to develop employees’ skills. For example‚ HR professionals advise managers and supervisors how to assign employees to different roles in the organization‚ thereby helping the organization adapt successfully to its environment. In a flexible organization‚ employees are shifted around to different business functions based on business priorities and
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1. What is an organization? Why are managers important to an organization’s success? Answer – An organization is a systematic arrangement of people brought together to accomplish some specific purpose. All organizations because each comprises three common characteristics. 1) Every organization has a purpose and is made up of people who are grouped in some fashion. 2) No purpose or goal can be achieved by itself; therefore‚ organizations have members. 3) All organizations develop a systematic structure
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WHY INFORMATION TECHNOLOGY IS SO IMPORTENT TO THE MODERN WORLD Information technology plays a major role in the modern education. Various ideas are given by these technologies. In this faster and modern world‚ Education is an unavoidable segment. In olden days‚ Education was only the study in Hand books‚ but now‚ it is more advanced and practical. Now days‚ computer plays an active part in the modern education. It is more useful for making many assignments and projects. Now days‚ in ordinary
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What is management? What is importance of management? Management in all business and organizational activities is the act of coordinating the efforts of people to accomplish desired goals and objectives using available resources efficiently and effectively. Management comprises planning‚ organizing‚ staffing‚ leading or directing‚ and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. Resourcing encompasses the deployment and
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to managerial accounting (n.d.) has shown that the Institute of Management Accountants describes managerial accounting supports the decision making process through planning and controlling operations. Planning primarily appears in the budgeting process and Controlling occurs when managers compare actual performance with budgeted amounts to identify differences and then act upon differences that appear to be significant. For example‚ manufacturing companies use management accounting techniques to
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Accounting Cycle Intermediate Financial Accounting ACC/421 July 11‚ 2011 Accounting Cycle An accounting cycle is a sequence of six steps in the processing of financial transactions (from the time they occur to their inclusion in financial statements) pertaining to an accounting period. These steps are: (1) analyzing the transactions as they occur‚ (2) recording them in the journals‚ (3) posting debits and credits from journal entries to the general ledger‚ (4) adjusting the assets with
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Training is an important requirement for organizations to undertake because it is the systematic process of altering the behavior of employees in a direction that will achieve organization goals through giving employees the knowledge and skills they need to continue to make a positive contribution to the company. Also‚ it helps employees do their current work better and enhances organization effectiveness‚ productivity‚ and the quality of the management of people. I have attended many training
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Abstracts This paper starts with introducing importance of management accounting literature and reviews the historical development of cost accounting from 1850 through 2000‚ includes origin of management accounting and controlling practices. In addition it identifies the management accounting theoretical development‚ and the main critiques that shapes the development of management accounting‚ thus creating a ground for future research or reviews. As well as it presents challenge existed in the
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