CASE STUDY Tashtego Advanced Topics in Management Accounting and Control The purpose of this paper is to analyze the economic situation of the company Macedonian Shipping and give a recommendation whether the company should use the motor vessel Tashtego as a freight tender beween Dar-es-Salaam and Zanzibar in East Africa or as a tapioca ship between Balik Papan and Singapore in the East Indies. Fundamental to all these considerations are measurement issues. Financial measures‚ in particular‚ cost
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Key concepts and skills Project Cash Flows Relevant Cash Flows The Stand-Alone Principle Incremental Cash Flows Sunk Costs Opportunity Costs Side Effects Net Working Capital Financing Costs Other Issues Pro Forma Financial Statements and Project Cash Flows Getting Started: Pro Forma Financial Statements Project Cash Flows Projected Total Cash Flow and Value More about Project Cash Flow A Closer Look at Net Working Capital Depreciation Evaluating Equipment Options with
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Opportunity Cost Scarcity of resources is one of the more basic concepts of economics. Scarcity necessitates trade-offs‚ and trade-offs result in an opportunity cost. While the cost of a good or service often is thought of in monetary terms‚ the opportunity cost of a decision is based on what must be given up (the next best alternative) as a result of the decision. Any decision that involves a choice between two or more options has an opportunity cost. Opportunity cost contrasts to accounting
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Flows and Capital-Budgeting Decisions When evaluating cash flows for determining whether or not to pursue constructing a building to manufacture cupcakes there are several things to consider. The most important would be looking at a Grammy’s incremental after tax cash flow. Then one needs to determine the projects initial outlay‚ the differential cash flows over the project’s life‚ and the terminal cash flow. Also what needs to be looked at is what is the net present value and its internal rate
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1. Describe the organizational structures and devices 3M uses to encourage entrepreneurial activity. Why do they work? 3M heavily based its business on innovation and while doing this it always supported its employees in terms of being innovative. 3M also always followed the alternative ways in order to increase their profit and market share‚ and they found that one of the best ways is through organizational innovation. Therefore‚ in order to improve their business 3M developed 6 different strategies
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Scenario Citation of Concept in Reading Personal Experience in your Organization Three types of innovation: Incremental‚ Semi-Radical‚ And Radical. “Incremental innovation leads to small improvements to existing products and business processes… Radical innovation results in new products or services delivered in entirely new ways.” In the past five years Best Snacks has instituted incremental innovations that have simply built on previously successful marketing methods such as new packaging sizes
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Contribution Margin: = 72 rooms * 34 weekend nights * $5.00 = $12‚240. Net Change in Contribution Margin: = $12‚240 - $5‚005 = $7‚235 added profit before tax. Revised Profit before tax: = $22‚390 + $7‚235 = $29‚625 3. What is the proposed incremental contribution margin per occupied room/day during the off-season? Cleaning Supplies = = = 0.25 per room occupied. Linen Service Equivalent Days: Singles: ( * 1 * 7‚680) = 1‚536. Doubles: ( * 2 * 7‚680) = 12‚288 13
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Capital budgeting Capital budgeting describes the long-term longplanning for making and financing major long-term projects. long- CAPITAL BUDGETING 1. Identify potential investments. 2. Choose an investment. 3. Follow-up or “post audit.” Follow“post audit.” Net present value model Net present value model The net-present-value (NPV) method net-presentcomputes the present value of all expected future cash flows using a minimum desired rate of return. The minimum desired rate of
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Decision phases in supply chain Successful supply chain management requires much decision to the flow of information‚ product and funds. Each decision should be made to rise to supply chain surplus. These decision fall in to 3 phases depending on the frequency of the each decision and time frame during which a decision phase has an impact. As a result‚ each category of decision must consider uncertainty over the decision horizon. * Supply chain strategy or decision During this phase‚ given
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Commonwealth Bank: Home seeker Will Nichols The Communications Council Bronze‚ Australian Effie Awards‚ 2011 Title: Author(s): Source: Issue: Commonwealth Bank: Home seeker Will Nichols The Communications Council Bronze‚ Australian Effie Awards‚ 2011 Commonwealth Bank: Home seeker Agency: BMF Advertiser: Commonwealth Bank Author: Will Nichols Total Campaign Expenditure: Under $500K STRATEGIC COMMUNICATIONS CHALLENGE The Australian home loans market is highly
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