Accounting For Managers

INTRODUCTION1 BREAK-EVEN1 LEICESTER LTD BREAK-EVEN acid AND THE MARGIN OF SAFETY1 EVALUATION OF ESTIMATED PLANS3 LIMITATIONS OF BREAK-EVEN ANALYSIS4 ACCOUNTING CONCEPTS: HISTORICAL COST, PRUDENCE, ACCRUALS, AND handout CONCERN5 ACCRUALS6 PRUDENCE7 GOING CONCERN8 HISTORICAL COST10 CONCLUSION11 APPENDIX A12 APPENDIX B13 REFERENCES14 INTRODUCTION The buttocks of fiscal decision-making is economic abstract. at that place are a number of valuation tools currently offered to construction managers, including present price analyses, benefit/ damage compend, equivalent annualized be, cash flow analysis and break-even. Berryman & Nobe (1997) BREAK-EVEN Some of the nearly fundamental decisions to be make in financial anxiety are those concerning to pricing; the prices moldiness be high nice to cover all cost and offer a acquire. Cost-volume- attain analysis is used to help us how changing volumes of sales or revenue affect profits. The creative activity of this analysis is the calculation of break-even apex and understanding how profit leave behind vary with a qualifying in the volume of sales. Anon1 (2003) LEICESTER LTD BREAK-EVEN POINT AND THE MARGIN OF SAFETY The break-even testify is define as the period where sales or revenues equal expenses. There is no profit made or loss incurred at the break-even point. This figure is eventful for anyone that directs a business since the break-even point is the rase limit of profit when setting prices and determining margins; if the break-even point is non achieved, that business will (or should) ultimately go out of business. clearly the break-even point becomes very significant when calculating a scheme for net profit. Deal (1999-2003) The break-even point can be convey: total fixed be break-even point = contribution margin ratio whereas: Total fit(p) be are the sum of the fixed costs. Fixed costs are those costs that throughout the forecast period, are unmoved by changes in output. Fixed cos! ts take mark of, but not limited, depreciation on... If you want to get a full essay, couch it on our website: BestEssayCheap.com

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