Accounting For Managers

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

This figure is all important(p) 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 shoul d) in the long run go out of business. cle! arly 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 cost break-even point = contribution margin ratio whereas: Total stiff cost 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 grievance of, but not limited, depreciation on... If you want to get a full essay, couch it on our website: OrderCustomPaper.com

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