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This is a False Statement.
Generally Accepted Accounting Principles (GAAP) need not be followed by managerial accountants when preparing management reports.
Specifically, management accounting aims to
- provide Information for internal Organisation managers
- providing details to governmental regulating bodies
- Information for shareholders, the accounts payable department, and other parties outside the company
- information to shareholders, accounts payables, and other parties outside the company, as well as information to management inside the firm.
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Answer: Analysis of company's performance by the management.
Explanation: In the management discussion and analysis, the upper management of the company analyze and comment on the qualitative and quantitative characteristic of a company. This is seen as a secondary information in the company's yearly financial statement.
The MD and A, is considered valuable by investors as sometimes the management also comments about the upcoming projects of the company in such statements.
Telling employees gain motivates personnel to do their high-quality work. after they realize there are possibilities for advancement, they will do their process to a better standard to electrify those who are looking.
4 everyday business-level strategies emerge from those choices: (1) huge cost management, (2) wide differentiation, (three) targeted cost leadership, and (four) centered differentiation. In rare cases, companies are able to provide both low costs and particular capabilities that customers discover acceptable.
Put clearly, business strategy is a clear set of plans, actions and desires that outlines how a commercial enterprise will compete in a selected market, or markets, with a product or number of products or services.
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Answer:
Design Capacity Utilization= 75%
Production efficiency = 120%
Explanation:
Okay, so the question is to determine both the design and the effective capacity utilization measures and make a conclusion from there
1. The Capacity Utilization = The Actual Output/ Design Capacity
Actual Output= 300 hamburgers a day
Design Capacity = 400 Hamburgers a day
Therefore Capacity Utilization = 300 hamburgers/400 hamburgers x 100
= 75%
2. The Efficiency of the production = The Actual Output / The Effective Capacity
Actual Output = 300 Hamburgers a day
Effective Capacity = 250 hamburgers
= 300 Hamburgers/ 250 Hamburgers x 100
= 120%
Conclusion
First we see that the actual utilization of capacity is more better than the effective capacity and this is good. Also, the Design Capacity is higher than the actual capacity utilization which should also be expected as design capacity is a calculation based on ideal conditions that may be not realistic in real life conditions.