period in which the milestone is achieved。 In order to recognize revenue related to a milestone‚ the milestone must be considered substantive in its entirety (i.e.‚ milestone consideration may not be bifurcated into substantive and non-substantive components). Requires that (1) determining whether a milestone is substantive should be made only at the inception of the arrangement‚ and (2) to be substantive‚ consideration earned from the achievement of a milestone should: Be commensurate with the
Premium Income statement Income Generally Accepted Accounting Principles
Make or buy decision Definition of ’Make-Or-Buy Decision’ The act of choosing between manufacturing a product in-house or purchasing it from an external supplier. In a make-or-buy decision‚ the two most important factors to consider are cost and availability of production capacity. An enterprise may decide to purchase the product rather than producing it‚ if is cheaper to buy than make or if it does not have sufficient production capacity to produce it in-house. With the phenomenal surge in global
Premium Decision making
CHAPTER 4 Income Statement and Related Information ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics 1. Income measurement concepts. Questions 1‚ 2‚ 3‚ 4‚ 5‚ 6‚ 7‚ 8‚ 9‚ 10‚ 18‚ 28‚ 31‚ 32‚ 33 1 1‚ 2‚ 7 Brief Exercises Exercises Problems Concepts for Analysis 3‚ 4‚ 5‚ 6‚ 8 2. Computation of net income from balance sheets and selected accounts. Single-step income statements; earnings per share. Multiple-step income statements. Extraordinary items; accounting changes; discontinued operations;
Premium Revenue Income statement
is obvious to many that the goal of a company is to make a profit. According to Milton Friedman‚ what many businesses do not say is that this is their only responsibility and that it is to make the highest profit possible. As members of society‚ we should be concerned that these decisions will have affect us. I believe that a business has the responsibility to make a profit‚ but it has many others as well. A business not only has to make a profit but think about the long term affects such as their
Premium Business ethics Ethics Social responsibility
| | | |Assignment : Managing Cost and making financial interpretations for decision | | | |Tutor:
Premium Decision making Strategic management Budget
Decisions Involving Alternative Choices Structure: 13.1 Introduction Objectives 13.2 Decision Making 13.3 Types of Costs 13.4 Types of Choices Decisions 13.5 Make or Buy Decisions 13.6 Addition / Discontinuance of a Product line 13.7 Sell or Process Further 13.8 Operate or Shut down 13.9 Exploring New Markets 13.10 Maintaining a desired level of profit 13.11 Summary 13.12 Terminal Questions 13.13 Answers to SAQs and TQs 13.1 Introduction In the previous unit we learnt about Marginal
Premium Costs
(i) Data Management Component. The data management component performs the function of storing and maintaining the information that you want your Decision Support System to use. The data management component‚ therefore‚ consists of both the Decision Support System information and the Decision Support System database management system. The information you use in your Decision Support System comes from one or more of three sources: Organizational information: One may want to use virtually any information
Premium Decision support system Data warehouse
3 Cost-Volume-Profit Analysis Learning Objectives 1. Explain the features of cost-volumeprofit (CVP) analysis 2. Determine the breakeven point and output level needed to achieve a target operating income 3. Understand how income taxes affect CVP analysis 4. Explain how managers use CVP analysis in decision making 5. Explain how sensitivity analysis helps managers cope with uncertainty 6. Use CVP analysis to plan variable and fixed costs 7. Apply CVP analysis to a company producing multiple
Premium Contribution margin Management accounting Variable cost
Introduction: Our case study is on the Columbia City Bank. First of all we would like to talk about the general inner workings of a bank. A bank generates a profit from the differential between the level of interest it pays for deposits and other sources of funds‚ and the level of interest it charges in its lending activities. In recent history‚ investors have demanded a more stable revenue stream and banks have therefore placed more emphasis on transaction fees‚ primarily loan fees but also
Premium Costs Sales Bank
1. What was the Kanthal president‚ Ridderstråle‚ attempting to accomplish with the Account Management System? Are these sensible goals? Ridderstrale had the objective to find hidden profits and losses contained in their current accounting system. The old system did not fully disclose how their costs were applied to the sales accounts. The goals are very sensible as they will allow them to move forward with the proper information. 2. Why did Ridderstråle feel that the previous cost system
Premium Profit Revenue Profit margin