Accounting For Managers

INTRODUCTION1 BREAK-EVEN1 LEICESTER LTD BREAK-EVEN even AND THE MARGIN OF SAFETY1 EVALUATION OF ESTIMATED PLANS3 LIMITATIONS OF BREAK-EVEN ANALYSIS4 ACCOUNTING CONCEPTS: HISTORICAL COST, PRUDENCE, ACCRUALS, AND passage CONCERN5 ACCRUALS6 PRUDENCE7 GOING CONCERN8 HISTORICAL COST10 CONCLUSION11 APPENDIX A12 APPENDIX B13 REFERENCES14 INTRODUCTION The butt of fiscal decision-making is economic abstract. at that place are a number of valuation tools currently offered to construction managers, including present expense analyses, benefit/ damage synopsis, equivalent annualized be, cash flow analysis and break-even. Berryman & Nobe (1997) BREAK-EVEN Some of the nearly monumental decisions to be make in financial anxiety are those concerning to pricing; the prices must(prenominal) be high nice to cover all be and offer a meshwork. Cost-volume- gain ground analysis is used to help us how changing volumes of sales or revenue affect pro fits. The induction of this analysis is the calculation of break-even apex and understanding how profit leave vary with a qualifying in the volume of sales. Anon1 (2003) LEICESTER LTD BREAK-EVEN POINT AND THE MARGIN OF SAFETY The break-even dose 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 essential 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) l astly 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 restore be are the sum of the fixed costs. Fixed costs are those costs that throughout the forecast period, are superior(predicate) by changes in output. Fixed costs take delineate 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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