managerial accounting free books

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Limitations of throughput Accounting

Throughput accounting is management accounting technique used as means of measuring performance according to theory of constraints (TOC). It is in fact consist of an assembly of techniques which has their goal the maximization of output from a production system.

Limitations of throughput accounting

  • Selling price could be uncompetitive
  • Material suppliers may not be reliable
  • Product quality is low
  • Need
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Revision question on how to calculate break-even point and margin of safety.

Bonne Bia limited is a newly formed company in the catering business founded by Kate and Paul Johnson. Kate and Paul have considerable experience in the food industry and saw an opportunity to establish a food/beverage business to service the tourist market during the four months from May to August. The business will be located in Wexford and permission has … Read the rest

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Payback period investment appraisal technique- meaning and acceptance criteria.

Payback Period Investment Appraisal Technique This is the method of investment appraisal based solely on cash flows and not profit. The payback period shows the number of years over which the investment would be recouped and measures how fast the investor can recover his/her initial investment.

It is a measure of liquidity and it ignores all other cash flows after … Read the rest

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Advantage of payback period method

Payback Period Investment Appraisal Technique This is the method of investment appraisal based solely on cash flows and not profit. The payback period shows the number of years over which the investment would be recouped and measures how fast the investor can recover his/her initial investment.

Advantages of Payback period:

  • It is simple to calculate and understand
  • It least exposes
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