Accounting For Managers

INTRODUCTION1 BREAK-EVEN1 LEICESTER LTD BREAK-EVEN present AND THE MARGIN OF SAFETY1 EVALUATION OF ESTIMATED PLANS3 LIMITATIONS OF BREAK-EVEN ANALYSIS4 ACCOUNTING CONCEPTS: HISTORICAL COST, PRUDENCE, ACCRUALS, AND loss CONCERN5 ACCRUALS6 PRUDENCE7 GOING CONCERN8 HISTORICAL COST10 CONCLUSION11 APPENDIX A12 APPENDIX B13 REFERENCES14 INTRODUCTION The reason of fiscal decision-making is economic abstract. at that place are a number of valuation tools currently offered to construction managers, including present cost analyses, benefit/ damage abstract, equivalent annualized be, cash flow analysis and break-even. Berryman & Nobe (1997) BREAK-EVEN Some of the nearly real decisions to be do in financial anxiety are those concerning to pricing; the prices mustiness be high nice to cover all be and offer a pull in. Cost-volume- benefit analysis is used to help us how changing volumes of sales or revenue affect profits. The root of this analysis is the calculation of break-even apex and understanding how profit bequeath vary with a qualifying in the volume of sales. Anon1 (2003) LEICESTER LTD BREAK-EVEN POINT AND THE MARGIN OF SAFETY The break-even superman is define as the superlative where sales or revenues equal expenses. There is no profit made or loss incurred at the break-even point.

This figure is big 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) lastly go out of busine ss. clearly the break-even point becomes ve! ry 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 opinionated be are the sum of the fixed costs. Fixed costs are those costs that throughout the forecast period, are insensible(p) by changes in output. Fixed costs take paper 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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