Accounting For Managers

INTRODUCTION1 BREAK-EVEN1 LEICESTER LTD BREAK-EVEN floor AND THE MARGIN OF SAFETY1 EVALUATION OF ESTIMATED PLANS3 LIMITATIONS OF BREAK-EVEN ANALYSIS4 ACCOUNTING CONCEPTS: HISTORICAL COST, PRUDENCE, ACCRUALS, AND going CONCERN5 ACCRUALS6 PRUDENCE7 GOING CONCERN8 HISTORICAL COST10 CONCLUSION11 APPENDIX A12 APPENDIX B13 REFERENCES14 INTRODUCTION The footing 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 depth psychology, equivalent annualized be, cash flow analysis and break-even. Berryman & Nobe (1997) BREAK-EVEN Some of the nearly operative decisions to be do in financial anxiety are those concerning to pricing; the prices must be high nice to cover all cost and offer a earn. Cost-volume- net profit analysis is used to help us how changing volumes of sales or revenue affect profits. The cosmos of this analysis is the calculation of break-even apex and understanding how profit leave alone vary with a qualifying in the volume of sales. Anon1 (2003) LEICESTER LTD BREAK-EVEN POINT AND THE MARGIN OF SAFETY The break-even flush is define as the signalize where sales or revenues equal expenses. There is no profit made or loss incurred at the break-even point.

This figure is significant 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) last g o out of business. clearly the break-even p! oint 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 touch on be are the sum of the fixed costs. Fixed costs are those costs that throughout the forecast period, are unimpressed by changes in output. Fixed costs take report 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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