1) Explain the concept of the break-even point. The break-even point (BEP) is the spot at which cost and income are identical: there is no net loss or profit, and one has "broken even" in Economics, Business specifically cost Accounting. In other words according to Prof.Hossein Arsham, the break-even point is the point at which your manufactured goods stop costing you money to produce and sell, and starts to make a profit for your company. According to Michael.E.Cafferky and Jon Wentworth, "O...
The paper is discussion about the break even point analysis (BEA) as a tool for managing profitability of a business. Break even point is attained when the sales revenues are equal to the costs of a business. The two methods of BEA have been provided with provision of examples to explain the various aspects of the topic. The use of BEA at Apple Inc. has been discussed to show the real businesses applying the tool. I. Introduction Accounting for management (2010) defines break even point analy...
One of the major components in Malaysian Financial Reporting Standard 101 is financial statements. The financial statements are a structured representation of the financial position and financial performance of an entity. The objective of financial statement is to provide information about the financial position, financial performance and cash flow of an entity that is useful to a wide range of users in making economical decisions. Financial statements also show the result of the management's...
Breakeven Revenue = x Selling Price Number of Sales = = 200,000 Contribution per unit = =1.8 Original Break Even Revenue = x 10 = 1,460,000 New Break Even Revenue = x 10 = 1,860,000 Margin of Safety = Original = = 27% New = = 7% Difference = 20% Decrease in Margin of Safety 2 - Affects of Special Advertising Campaign If the numbers of unit sold is that equal to the change in the break-even point, generally it would be same. However, with the special advertising in place, even though it will g...
Cambridge Education Ltd provides HR/Payroll and Education services to schools within the Local Authorities. The company specialises mainly in the education sector and has been supporting HR and Payroll services and Education services to schools since 2000. Assisting with timely and accurate payments to employees are key objectives of the payroll department. In addition, the company ensures that the employees pay are applied under the Local Authority terms and conditions and also all statutory...
What is Lean? The origin of lean stems from Toyota Production System. Taiichi Ohno in his book 'Toyota Production System: Beyond Large-Scale Production', described the most important objective of Toyota System as "increase production efficiency by consistently and thoroughly eliminating waste". The revolution and evolution of this system is now referred to as lean production. Dave Stockton and Riham Khalil in Lean Business Environment lecture note De Montfort University, has defined lean as "...
This semester, I was assigned a term project and I have selected the second question to be answered which is "Should management accountants be involved in the pursuit of green accounting". It is of my interest since nowadays, organizations specifically manufacturing industries have initiative to care and take into consideration on the environmental conditions. Nevertheless, some of them included that consideration as their corporate social responsibility. Human being is the one who should hav...
Accounting is the providence financial statements to others. The information presented is in numeric figures stating the assets or liabilities owed by a business. Economic activities of the business are being processed into reports and make known to decision makers showing the financial position of an organisation and its profitability of its operation. In business, numerous daily transactions happens between companies to companies, the accounting information which transacts through everyday ...
In financial management, there are concepts that are considered extremely important as having a profound effect on financial decision-making, on business value and on the financial stability of its owners in the long run. The concepts referred to as the fundamental building blocks of financial management are the concepts of shareholder value, risk and return and cash flows. Another important concept in financial management is the role of the financial markets as a source of company finance an...
A multinational company (MNC) is an enterprise that delivers services facilities or owns and controls production in at least two countries other than its home country. It means the company not only export products but also has branches and manufacturing in others countries. In 20th century, MNC is originated and expanded after World War II. A MNC is also can be termed as multinational enterprise (MNE), transnational corporation (TNC), Multinational organization (MNO), Super National Enterpris...
