Questions On Strategic Management Accounting

3147 Words Aug 6th, 2014 13 Pages
Strategic management accounting
Table of Contents
Introduction……………………………………………………………………………………….1
Part A 1
Part B 3
Costing methods 3
Illustrations 6
Conclusion 7
References 8

List of figures
Figure 1: Marginal costing method 4
Figure 2: Absorption costing 5

Introduction It is with passage of time that various scholars have developed scientific concepts and techniques of financial analysis. The effective adoption and evaluation of each of the methodology is possible by way of deep understanding of subject matter involved (Brás and Rodrigues,2007). The report presented provides deep understanding of various financial aspects such as costing methods, concept of return on investment and economic value added. The report helps in gaining valuable insights and adoption of various financial techniques. It provides detailed analysis of financial and economic methods in different business environment.
Part A “Both Return on Investment (ROI) and Economic Value Added (EVA), when used as performance measures in an organization, encourage managers to be short-term in their focus and decision making”.
Return on Investment is the technique through which the organization can evaluate and analyze the viability and feasibility of investment options. It helps in calculation of return in percentage terms that is generated from investment to be made on the part of the company (Helgesenand Voldsund,2009). It is through adoption of formula mentioned underneath that return on…

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