ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.22 : An engineering company intends to produce a small piece of biochemical instrument for sales. Let A = overall fixed cost of production, B = variable cost of production per unit, C = selling price per unit, D = quantity of unit produced. Breakeven Analysis is used where revenue = cost. (a) Explain the role of Breakeven Analysis by using A, B, C and D. (b) Find the value of Contribution Margin in term of A, B, C and / or D. (c) At the breakeven point where revenue = cost, derive an equation of D as a function of A, B and C.
1 1899ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.26 : In a construction accounting for a biochemical processing plant, $A has been spent to date, and another $B is expected required to complete the construction project. The biochemical processing plant is expected to generate a total revenue of $C. Calculate the : (a) estimated total costs; (b) percentage completion of project; (c) total estimated profit; (d) profit to date.
1 1836ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.27 : A biochemical engineering consultancy applies construction accounting in its finance. Its project began on 1 January 2010. Total revenue generated from the project was $9000. On 1 January 2011 as the budget, $2000 had been spent, with $6000 expected. However, the project cost increased latter, causing deviation from its initial budget on 1 January 2012, where $7000 had been spent, with $1400 expected. Let (estimated total cost) = (spent cost) + (expected cost to be spent), (percentage completion) = 100 (spent cost) / (estimated total costs), (total expected profits) = (total revenue) - (estimated total costs). Calculate : (a) total expected profits on 1 January 2011 and 1 January 2012; (b) estimated total cost as and not as the budget; (c) percentage completion of the project since the project began, in the first and second years.
1 1722ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.31 : In a biochemical engineering company, let the actual revenue generated = A, actual cost incurred = B. According to the standard budget, the revenue generated = C, cost incurred = D. (a) Find the profit according to : (i) actual situation; (ii) standard budget. (b) Calculate the Variance Due to Price and Efficiency in : (i) revenue generated; (ii) cost incurred; (iii) profit. (c) If E > F where > represents : more than, find the 4 pairs of values of E and F in favorable conditions.
1 1852Comment on the land revenue system under Akbar with special reference to the Zabti system of assessment.
HP,
1182Examine the evidence that suggests that land revenue was important for the Mughal Fiscal system.
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995
Describe the potential marketing plans you would have to increase sale revenue from existing customers?
Whether forfeiture of shares is a part of capital or its a part of revenue?
Hi all.... Please explain to me... what G/L account should I maintain / create If I want to do the intercompany transfer asset - no revenue. and if I want to do the intercompany transfer asset - Net Book Value. What is the different between this 2 method. My company's requirement is ... 1. Transfering the asset on company A to company B, example Asset 1 - acquisition date : 01.06.2007 , acquisition amount : 1000, accumulated depreciation till 31.12.2007 : 10 so the net book value is 90, useful life 4 years the company wants to transfer this asset in company B. is it possible to transfer all the data just like I explain above : acquisition date : 01.06.2007 , acquisition amount : 1000, accumulated dep = 10
Read the case given below and answer the questions given at the end. Krutika Designers Ltd is an Indian company engaged in designing shirts for an international shirt manufacturer. Its operations are currently restricted to designing shirts for the Indian market. The firm is interested in extending its operations to the European markets, but is restricted by its lack of knowledge about the latest fashions and trends prevailing there. Hence, the firm has decided to open an office in Finland for establishing a network in Europe that will give the firm access to the needed information. The firm feels that its does not have the capability of sustaining itself in the foreign markets in the long-term, and will be able to generate additional revenue from these activities only for the next 5 years. After that, the Finnish office will have to be closed down. The firm anticipates an initial investment of Rs.14 million. The project is expected to generate the following cash flows over the 5 years period. Year Cash flow (Finnish Marks) 1 2 3 4 5 10,00,000 20,00,000 50,00,000 50,00,000 30,00,000 These cash flows are expressed in terms of today’s money. The firm can claim depreciation in India according to the Straight Line Method. The salvage value from the project is expected to be nil. The Finnish Government does not provide any incentives for foreign investments. However, currently it is making an attempt to have better economic ties with India. Hence, it has decided to extend a loan of 50,000 marks to Krutika Designers. The loan will be at a concessional interest rate of 7%. The loan is to be repaid in 5 equal annual installments which will include the interest payments. The project will generate additional borrowing capacity of Rs.5 million for the firm. However, as the firm does not have any firm contract with the international shirt manufacturer, its domestic revenues are expected to be very volatile. Therefore, there is no surely that the firm will be able to absorb the tax benefits arising out of depreciation and additional borrowing capacity. The firm does not intend to indulge in any illegal money transfers. The current spot rate for the Finnish Mark is Rs.7.25/FM. The inflation rates in India and Finland for the next 5 years are expected to be 8% and 3% respectively. The exchange rate is expected to move in tandem with the inflation rates. Indian tax rate is 35% while Finnish tax rate is 40%. India and Finland have entered into a tax treaty whereby the earnings of the residents of one country are taxable in that country only. In India, the nominal risk-free interest rate is 11%. The same is 6% in Finland. The Indian nominal interest rate (including risk-premium) is 15%, while that in Finland is 9%. The nominal all-equity rate in India is 18%. 1. Comment on the financial viability of the project. 2. What are the different circumstances in which nominal all-equity discount rate and real all equity discount rate should be used for discounting the cash flows? Explain the rationale behind it. 3. Comment on the financial viability of the project if the firm is sure about being able to absorb the tax benefits arising out of depreciation and increased borrowing capacity. 4. Explain the concept of exchange risk and how it affects an international project. 5. How can the financial structure of a project be used to overcome repatriation restrictions? What are the additional benefits of such maneuvers?
Cost center 60500 in controlling area 1000 is locked for revenue postings on 31.03.2008.Now How can I Assign the account to another cost center or allow cost center 60500 to again accept revenue postings.
How do you create new status groups for capital spending accounts and revenue accounts? What are the steps and the T codes used?
How does a bank or financial institution calculate COGS? What are the 'direct' costs of a loan or deposit revenue operation?
------------- How to identify the Revenue Column in Report?
6. NEED OF ONGOING MANAGEMENT CYCLE( Case Study ) Sidney Greenburg was appointed the position of the director of marketing for a small electronics component manufacturer. The company had its revenues growing at the rate of 20% each year and in 1982, they were at 30 million level The president felt that the growth of the company required serious planning efforts to determining strategies product emphasis and new product development. Mr. Greenburg realising the need to develop the marketing plan developed a suggested format to obtain inputs from his regional sales managers. The format to obtain divided into two parts (a) territory brief for established status of sales activities and (b) territory plan asked for identification of key goals, strategy & resources required to accomplish stated goals. Sales forecast by products was requested for 3 plan Yrs. Tom Rosenfield was the marketing manager for Europe He was previously in the engineering department & was assigned to Europe because of his technical& Foreign language capabilities. He replied to Mr.Greenburg as follows: “While I will complete the forms on the country brief& country plan promptly I have some conceptual problems with them time& time again we have been requested for projected figures I remember putting together a presentation for the Executive Vice-President (VP) & Treasurer last year. Great we educated those guys but what are the results of such formality? The projections have not yielded specific results, resources are used at a minimal level & we are not generating needed sales. So it is my contention that while goals projections& forecasts provide immeasurable guidance for a company with stable sales & developed product lines, for us a fledglings (young) industry, they distract from the job at hand. My plan has always been to hit the market- as hard I am able & I believe this should hold true for all other regional managers. We have large amounts of resources held up in ineffective’ marketing planning efforts such as these need to redirect these efforts to self rather than compile data. We need more people beating the pavement (action) rater than sitting on their desks developing plans& strategies (contemplation) Sell, sell, sell. Get the backing as big as possible. Planning is wasteful. Let us concentrate on aggressive sales & optimize sales volume at any cost. A. What has Mr.Greenburg not done to accomplish his planning tasks? B. Is Mr.Rosenfield right in making his comments in response to Mr. Greenburg’s request? C. Is Mr. Rosenfleld performing his management function. D. What would you do if you were Mr.Rosenfleld’s boss?
6. NEED OF ONGOING MANAGEMENT CYCLE( Case Study ) Sidney Greenburg was appointed the position of the director of marketing for a small electronics component manufacturer. The company had its revenues growing at the rate of 20% each year and in 1982, they were at 30 million level The president felt that the growth of the company required serious planning efforts to determining strategies product emphasis and new product development. Mr. Greenburg realising the need to develop the marketing plan developed a suggested format to obtain inputs from his regional sales managers. The format to obtain divided into two parts (a) territory brief for established status of sales activities and (b) territory plan asked for identification of key goals, strategy & resources required to accomplish stated goals. Sales forecast by products was requested for 3 plan Yrs. Tom Rosenfield was the marketing manager for Europe He was previously in the engineering department & was assigned to Europe because of his technical& Foreign language capabilities. He replied to Mr.Greenburg as follows: “While I will complete the forms on the country brief& country plan promptly I have some conceptual problems with them time& time again we have been requested for projected figures I remember putting together a presentation for the Executive Vice-President (VP) & Treasurer last year. Great we educated those guys but what are the results of such formality? The projections have not yielded specific results, resources are used at a minimal level & we are not generating needed sales. So it is my contention that while goals projections& forecasts provide immeasurable guidance for a company with stable sales & developed product lines, for us a fledglings (young) industry, they distract from the job at hand. My plan has always been to hit the market- as hard I am able & I believe this should hold true for all other regional managers. We have large amounts of resources held up in ineffective’ marketing planning efforts such as these need to redirect these efforts to self rather than compile data. We need more people beating the pavement (action) rater than sitting on their desks developing plans& strategies (contemplation) Sell, sell, sell. Get the backing as big as possible. Planning is wasteful. Let us concentrate on aggressive sales & optimize sales volume at any cost. A. What has Mr.Greenburg not done to accomplish his planning tasks? B. Is Mr.Rosenfield right in making his comments in response to Mr. Greenburg’s request? C. Is Mr. Rosenfleld performing his management function. D. What would you do if you were Mr.Rosenfleld’s boss?
1. We have been asked to add summary information to sales reprasentatives performance report. The report needs to be grouped by country and city to compare performance between areas Also we need to include revenue totals for each city and each country.
2. We have asked to create a repots showing sales by region in order to determine which regions are generating the most revenue and highest sales volume. The report needs to include the revenue and quantitiy sold of each subcategory with in category.
3. The vice president of sales has requested a graphical display of the same information provided in our last crosstab report (whatever I mentioned in above question) for an up coming presentation. We need to provide a chart report that shows which regions generate the most revenue and sales volume.
What si the differance between REVENUE and PROFIT?
fridge was capital or revenue?