Introduction This memorandum gives guidelines on the accounting for costs that are associated with the production of frames for the Winnebago home. The technique that will be used to estimate the cost of the product is job order costing. Direct materials In this case, Freightliner needs to use job-order costing...
Introduction The analysis of financial documents, such as income statements or balance sheets, allows companies to measure performance. In addition, analysis can be useful in budgeting and strategic planning activities. Certain values represented in financial documents can be used to compare the company’s performance to some of its key competitors’,...
Financial ratios Profitability ratios Gross margin Gross Loss/net sales =(2059)/1362= 1.5117 Operating margin Operating income/ net sales = 306/1362= 0.2247 Profit margin Net profit/net sales = 1923/ 1362 = 1.4119 Return on equity (ROE) Net income/average shareholder equity = 719/39.79 = 18.07 Return on investment Net income /average total assets...
GAAP and IFRS Convergence Generally accepted accounting standards (GAAP) is a set of strict accounting rules that are applied in financial reporting. These standards define specific concepts, making such processes more transparent and stable (“About GAAP,” n.d.). Another set of accounting regulations is the International Financial Reporting Standards (IFRS). These...
Introduction to IAS The International Accounting Standards Board (IASB) is an international accounting standard defining body, which works independently for International Financial Reporting Standards (IFRS). It sets the International Accounting Standards (IAS), which provide a global, standard method of accounting and reporting in many countries. Since 2000 when globalization became...
Introduction Managerial and financial accounting are vital components of modern business but they both contribute to overall operations in different ways. Accounting serves the purpose of determining the operations of a business in regards to future projections, past performances, and current requirements. Managerial accounting has its links in cost management,...
The direct and indirect approach A cash flow statement is important in the organization because it shows the movement of cash. It outlines where a company receives money from and how the money is used. That is cash receipts and payments. The statement is divided into three distinct parts. Each...
Overview International standards are standards which are normally developed by international standards organizations. These standards are usually available to be considered and used worldwide. The most recognized organization for developing international standards is the international organization for standardization (ISO). ISO plays a major role in facilitating international trade and cooperation...
Introduction There are many users of business information who do not work for companies but are associated with them directly or indirectly. These users are considered as external users, and they do not have access to the financial information generated by different departments of a company. Therefore, they have to...
Executive Summary The current operational audit report is prepared to observe deficiencies noted during the audit of Subway restaurant. There are problems with safety, cleanness, food handling, and parking. The recommendations are also presented in the report that could help in bringing changes and improvements in various operations of the...
Introduction Management plays a significant role in the success and running businesses. Therefore, selecting the best approach to management is critical. It is worth noting that businesses operate in dynamic environments. As such, business leaders should incorporate the changes in the environment in the running of businesses to enhance success...
Globalization has massively affected firms in the current market. Firms are increasingly finding themselves operating in regions that are beyond the borders of their home countries. When doing business in countries other than the home country, it is important to determine when to comply with the host country’s tradition and...
