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3 years ago

Management accounting is accounting for effective management. Explain this statement.

Business

1 answer:

Marianna [84]3 years ago

4 0

Explanation:

Management is the process of organizing, commanding, coordinating and controlling administrative resources. When we talk about management accounting, we relate to a company's financial resources, which are essential for profitability, payments, investments, etc., that is, so that the business can flow effectively.

Therefore, it is correct to say that managerial accounting is the accounting for effective management because accounting is an instrument of control and management for organizing financial accounts and indexes, these being essential instruments in helping to better decision making in a period of time, giving subsidies for managers to adapt and anticipate negative financial situations for example.

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Read 2 more answers

The current price of a stock is $50, the annual risk-free rate is 6%, and a 1-year call option with a strike price of $55 sells

wariber [46]

Answer:

$9.00.

Explanation:

The computation of the value of a put option is shown below:

Data provided in the question

Current price of the stock = $50

Risk free rate = 6%

Strike price = $55

Sale price = $7.20

Based on the above information

The value of put option is

Put = V - P + X exp(-r t)

= $7.20 - $50 + $55 e RF - 0.06(1)

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= $9.00

Hence, the value of put option is $9

6 0

3 years ago

Change Corporation expects an EBIT of $57,000 every year forever. The company currently has no debt, and its cost of equity is 1

Deffense [45]

Answer:

a) $337,615.38

b-1) $360,910.85

b-2) $415,266.92

c-1) $362,637.36

c-2) $438,461.54

Explanation:

a) To find the current value of the company, we have:

$\frac{57,000*(1 - 0.23)}{0.13}$

= $\frac{57,000*0.77}{0.13}$

= $337,615.38

b-1) If the company takes on debt equal to 30 percent of its unlevered value.

337,615.38 + (0.23 * 337,615.38 * 0.30)

= $360,910.85

b-2) When the company can borrow at 10 percent. The value of the firm if the company takes on debt equal to 100 percent of its unlevered value will be:

337,615.38 + (0.23 * 337,615.38 * 1)

= $415,266.92

c-1) The value of the firm if the company takes on debt equal to 30 percent of its levered value:

$\frac{337,615.38} {(1 - 0.23) * 0.30}$

= $362,637.36

c-2) The value of the firm if the company takes on debt equal to 100 percent of its levered value:

$\frac{337,615.38} {(1 - 0.23) * 0.1}$

= $438,461.54

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3 years ago

What are objectives of human resource department

Fantom [35]

Answer:

Objectives of HRM include ensuring availability of resources, easy access to data, on-time payroll, ensuring compliances, etc. HRM objectives are basically influenced by organisational goals and vertical. Objective of HRM is to ensure a stable work environment with data at one place and efficient operations.

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3 years ago

Management accounting is accounting for effective management. Explain this statement.​

Management accounting is accounting for effective management. Explain this statement.