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Business owners often use management accounting to track, record and report financial information for managerial review. Management accounting does not usually follow any national accounting standards. Business owners can design management accounting systems according to their company’s business operations or management’s need for business information. Management accounting has several advantages. These advantages usually coincide with the ability for companies to improve operations and overall profitability. Business owners can also create a competitive advantage by developing cost allocation processes in their management accounting function.
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1. a) FV= 7000(1+.12)^2=$8,780.8
2. a) FV= 3000(1+.08)^10=$6,476.77
b) FV= 3000(1+.08)^20=$13,982.90
3. a) FVA= (1+.06)^5 – 1 x 1000 = $5,637.09
4. a) FVA= (1+.12)^30 – 1 x 4000 = $965,331
5. a) PV= 1______ x 20,000 =$16,792.40
b) PV= 1______ x 20,000 =$14,099.20
6. a) PVA= Payment * (1- [1/(1+r)^n])/r
PVA= $8,000 * (1- [1/(1+.09)^5])/.09= $31,117.21
7. Option 1 is to receive one off payment of $15,000
Option 2 is to receive
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Case Study 4: Why do public-sector projects fail?
The public-sector is the portion of society controlled by national, state or provincial, and local governments. The composition of public-sector varies by country, but in most countries it encompasses universal, critical services such as national defense, homeland security, police protection, firefighting, urban planning, corrections, taxation, and various social programs. It is no surprise for government to budget a large expense in any related project due to its important. However, history prove that public-sector project often go wrong and fail.
Under this situation, this essay is going to analyses the key problems which
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VMWM Research Department, March 31, 2014
WEEKLY STOCK PICKS
Disclaimer: The following stock picks are for information purposes only. The information stated herein may reflect the opinion and views of VM Wealth Management in relation to market conditions and does not constitute any representation or warranties in relation to investment returns and the credibility of the sources of information relied upon in the preparation of this report, without further research and verification. Before making any investment decision, please consult a VM Wealth Management Advisor.
LAST TRADED PRICE: $18.05
4 WEEK PRICE MOVEMENT
RECOMMENDATION & RATIONALE
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* Existing liability
* Uncertain timing or amount on future expenditure. (ito ang nagdidistuinguish)
* Liability still exist but the date due and amount is indefinite
* May equal to estimated liability or loss contingency (accrued because it is both probable and measurable)
Provision and other liabilities
* P; uncertain OL; certainty of timing and amount
Recognition of provision
* P shall be recognized in the FS under the ff. conditions
A. Present Obligation (legal or construtive) from past event
LO: arise from contract, legislation or other operation of law
CO: dervide from an entity’s action. When entity from established
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Solutions to Questions
10-1 In a decentralized organization, decision-making isn’t confined to a few top executives, but rather is spread throughout the organization with managers at various levels making key decisions relating to their own spheres of responsibilities.
10-2 The benefits of decentralization include: (1) relieving top management from day-to-day problem solving and allowing them to focus their time on broader issues; (2) training lower-level managers in decision making, thereby preparing them to assume greater responsibility; (3) greater job satisfaction and greater incentive for lower-level managers; (4) better decisions, since
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standard board (FASB) updates GAAP as needed.
The two types of accounting are the Certified Public Accounting (CPA) who does income, taxes and offers finical advices and the Certified Management Accounting (CMA) who works for one or single business and the non profit organization. The transaction and the accounting equation is so important is that is always true - and it forms the basis for all accounting transactions. At a general level, this means that whenever there is a recordable transaction, the choices for recording it all involve keeping the accounting equation in balance. The accounting equation concept is built into all accounting software packages, so that all transactions that do not
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Accounting Horizons Vol. 26, No. 1 2012 pp. 125–133
American Accounting Association DOI: 10.2308/acch-50087
Some Conceptual Tensions in Financial Reporting
American Accounting Association’s Financial Accounting Standards Committee (FASC) Yuri Biondi, Jonathan Glover, Karim Jamal (Chair and principal co-author), James A. Ohlson, Stephen H. Penman, Shyam Sunder (invited principal co-author), and Eiko Tsujiyama
SYNOPSIS: We examine four key conceptual tensions that are at the heart of many financial reporting dilemmas: stocks versus flows, ex ante versus ex post, conventions versus economic substance, and top-down design versus bottom-up evolution as sources of accounting
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– investors and creditors.
Providing information that is intended primarily for use by internal management in decision making required to run the business. return of investment The repayment to an investor of the amount originally invested in another enterprise.
Basic Functions of an Accounting System
Interpret and record business transactions. Classify similar transactions into useful reports.
Summarize and communicate information to decision makers.
Cost & Revenue Determination Job costing Process costing ABC Sales Assets & Liabilities Plant and equipment Loans & equity Receivables, payables & cash Cash Flows From operations From
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costing system but they have limited resources to do so. Lastly, behavioral factor is also a resistance to switch to activity-based costing system. Unlike conventional costing system, activity-based system requires more non-accountants staffs. This need the corporation and expertise of different field but not just accounting (Langfield-Smith, Thorne, & Hilton, 2009).
Langfield-Smith, K., Thorne, H. & Hilton, R.W. (2009). Management Accounting: Information for creating and managing value (5th ed.). NSW: McGraw-Hill Australia Pty Ltd.
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, thus its operations activities consists of displaying merchandise for sale and protecting it from theft.
c. Outbound logistics includes delivering the products to the customer.
d. Sales & marketing includes ringing up and processing all sales transactions and advertising products to increase sales.
e. Service includes repairs, periodic maintenance, and all other post-sales services offered to customers.
The four support activities at S&S:
a. Firm infrastructure includes the accounting, finance, legal, and general administration functions required to start and maintain a business.
b. Human resource management includes recruiting, hiring, training
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internal processes. In the 1980’s, traditional managerial accounting practitioners were heavily criticized on the grounds that their practices had changed little over the preceding 60 years, despite radical changes in the business environment.
The last decade’s new managerial accounting practices such as activity-based-costing, the balanced scorecard and bottleneck accounting were developed.
Unlike traditional managerial accounting, activity-based-costing deemphasizes direct labor or raw material as cost drivers and concentrates instead on activities (e.g. the number of production runs per month) that drive costs. Activity-based costing gives the management
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Management accounting is concerned with the provision and use of accounting information to managers within organizations, to facilitate the managers in their decision making and management control functions. Unlike financial accounting information (which, for the most part, is made publicly available), management accounting information is used within an organization and is usually confidential. (Jiambalvo)
The distinction between traditional and innovative management accounting practices can be illustrated by reference to cost control techniques. Traditionally, management accountants’ principal cost control technique was variance analysis, which is a systematic approach to the comparison
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trail exists. Accounting provides the records for the company, and feeds business intelligence (BI), enterprise resource planning (ERP), and other systems and decisions critical to the company.
As with all things in business, accounting is managed by software specifically designed for the task. Riordian Manufacturing produces various plastic goods, and there is accounting software specifically tailored to manufacturing companies. Find Accounting Software (n.d.) is one resource for finding tailored accounting software.
How It All Ties Together
Business Intelligence (BI), Enterprise Resource Planning (ERP), Supply Chain Management (SCM), Customer Relations
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presentation]. Retrieved from American InterContinental University Virtual Campus, Acct310-1405B-02: https://mycampus.aiu-online.com/
John Wild, K. S. (2014). Managerial Accounting. New York: McGraw-Hill Higher Education.
Management Control Systems: An overview. (2015, February 8). Retrieved from Management control systems Overview: http://managaementcontrolsystemsoverview.blogspot.com
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principles. This procedure was utilized by our course of management accounting and I believe that it was very effective in making us understand the basics with application of our minds. We were able to apply our mind and forced us to understand the underlying problem. We were further able to distinguish between the relevant and irrelevant information and were able to understand the implications of each potential solution. Our lecturer proved to be a great facilitator and guided us to discover the appropriate methodology with which we could approach the problem.
2) Assign group projects: This way we as a group worked together to complete an assignment, we were obligatory to articulate to each
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Wainwright, S. (Ed.). (2012). Principles of Accounting: Volume II. San Diego, CA: Bridgepoint Education.
Question: What is the most important role of management accounting?
Answer: Management accountants work at the beginning of the accounting cycle, recording the financial transactions of a company as they occur. This business role ensures that companies have a good understanding of their financial health giving executive management the ability to make informed decisions. Management accountants is generally concerned with informing managers so that they stay up to date with relevant information so that they can make informed business decisions. Management
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Fraud committed on behalf of an organization vs. fraud committed against an organization
Fraud commuted on behalf of the organization entails a section of the organization’s employees especially the senior management engaging in activities that are meant to benefit the company but in reality cause serious issue to the larger society the group is supposed to serve. An example of these types of frauds is false bidding scheme that refers to situations that a firm pretends to have followed the bidding system although practically the bidding did not take place. One party is allocated the bid before they are received for evaluation
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ACCOUNTING FOR AIRLINE FREQUENT FLYER PROGRAMS:
MANAGEMENT INCENTIVES AND FINANCIAL REPORTING IMPACTS
Brian J. Franklin, BBA Accounting ‘12, College of Business and Public Policy, University of Alaska Anchorage,
3211 Providence Drive, Anchorage, AK 99508, 907-268-4233 Ext. 401, email@example.com
The obligation to provide free or reduced-fare travel to passengers who redeem their accrued frequent
flyer program (FFP) benefits represents a significant liability on every major U.S. airline’s balance
sheet. Major U.S. airlines employ one of two methods to account for the liabilities they incur when
issuing mileage credits to traveling passengers. The
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. There are two different types of plans, defined benefit pension or defined contribution pension plans. Both plans have advantages, disadvantages, accounting policies and disclosures are applicable. It is a requirement of management to prepare pension statements according to the Statement f Recommended Practices (SORP). The accounting policies should be clearly explained in the notes for each material item and include accruals, expenditures, investment income, benefits and payments. Consistency of accounting treatment between periods is a fundamental accounting concept and changes should not be made unless justifiable and disclosed with a reason. The notes disclosed should be in relation to
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economic recession in the following decade has now proved to be an economic giant thanks to the reforms and application of lean strategies.
Synchronization of cost and departments in an organization is an activity that calls for professionalism and due diligence to the end. For every Triton Corporation manufacturing department to operate successfully, all the required resources should at least be sufficient enough to contain and match the internal controls. Managers in all various levels of management will require information on what they can base their operating decisions.
Managerial accounting, a part of which I am, therefore, is a critical element division of organizations and especially
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investments in the company. How do we resolve this dilemma?
* Financial Reporting according to GAAP (guidance to ensure that the company FAIRLY and ACCURATELY presents its financials)
* Financial Statement Auditors – auditors verify whether management presented their financial statements fairly within the boundaries of GAAP.
* Thus, financial reporting (and auditing) facilitates TRUST in financial markets. This encourages investment and allows our economy to grow and businesses to arise.
* Who are the users of financial statements?
* Internal Users (Managers): Marketing, Production, Finance, CEOs, etc. THINK OF THIS AS MANAGERIAL ACCOUNTING…you
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. The financial statements are presented in Indian rupees.
b) Use of estimates
The preparation of financial statements in conformity with Indian generally accepted accounting principles requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements and reported amounts of revenue and expense for the year. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.
c) Revenue recognition
* Revenue is recognised to the extent that it is probable that the
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ACC 556 Week 5 Assignment 1:
08 February 2015
This assignment will investigate the unethical and unlawful activities perpetrated by three members of DHB Industries leadership team. David Brooks was convicted of insider trading, fraud, and obstruction of justice on September 14, 2010. This paper will describe the company and the fraud that was involved, outline an audit plan that could have prevented the fraud from occurring, determine and evaluate key types of audit evidence, and speculate two areas that would require more sampling and two areas that require less sampling in the audit process.
Description of Company
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Expenses Prime Cost Factory Overheads Production Cost
Administrative Travelling Depreciation of Machines Canteen Salaries Other Exp 200 3600 1500 8000 42000 55300
Selling and Distribution Traveling 2900 Depreciation of Motor Vehicles 3000 Commissions 1400 Salaries 72000 Display Equipment 300 Other Exp 65000 Carriage on Goods Sold 7800 Financing Loan 3800 Total Cost. 898500
Period and Product Cost. By accounting standards, only manufacturing cost or direct cost should be included in calculations of production cost for stock valuation. Production costs. - Those costs that are identified by goods, purchased or identified for the same in a manufacturing organization
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Case 2: Wilkerson Co.
October 16, 2013
1. What is the competitive situation faced by Wilkerson?
Wilkerson has three products and they each faces different competitive situations.
a. The pump market is highly competitive and Wilkerson has to match current market prices to keep its current market share.
b. Wilkerson is a market leader in the valve industry and the market is mature and has only a few players.
c. Flow controller market is an emerging market and is in the growth stage with unsatisfied demand and price sensitivity seems low in this market.
d. The design
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SUGGESTED ANSWERS TO DISCUSSION QUESTIONS
4.1 Contrast the logical and the physical view of data and discuss why separate views are necessary in database applications. Describe which perspective is most useful for each of the following employees: a programmer, a manager, and an internal auditor. How will understanding logical data structures assist you when designing and using database systems?</para></question><question id="ch04ques02" label="4.2">
Databases are possible because of their database management system (DBMS). As shown in Figure 4.2, the DBMS is a software
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Accounting in H&T
Continuous Assessment 3
Vu Que Linh (1206009805)
Andrian Hendro (1207009990)
Giovanni Budianto (1110009123)
Pham Thuy Van (1204009616)
Pham Thi Hoan Hao (1207009935)
Maria Astrid K (1206009804)
Huynh Ngoc Thanh Truc
Table of Contents
Presentation of financial statement of the past three years……........1
Identification of major ratios……………………………………..…..2
Sales trend justification……………………….………………………4
Buying or leasing………………………………………………………5
Accepting a special order……………………………………………..9
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/borrower just pay what should they pay only.
To follow the trends, there are has an initiative to attract people to adapt the Islamic accounting in their world which are:
1. Creating a new financial instrument, such as credit cards
2. Creating new financing mechanisms, that reduce procedural cost for the work list, such as exchange through the World Wide Web, and,
3. Make a innovative ideas to solute the financial management, such as cash management, debt, or preparation of funding formulas for specific projects suited to the circumstances surrounding the project.
For the conclusion, I strongly agree the Islamic accounting will be increasing and will be accepted all over the world. With the pureness of Islam, all the people will satisfied by adapting the Islamic methodology in their work because Islamic accounting is also same with the conventional accounting by the process but at the same times, its assist people to be unity.
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guilty for the stock and accounting fraud, so it was obvious that the fraud occur from the management level of the company. WorldCom’s major operating expense was called line costs, which means cost paid to lease other telephone operators’ network, phone lines and so on. In short, just remember that line costs are its main operational expense. In 2000, WorldCom was actually not doing a good business, and they somehow tried to cover the current reality by performing some ‘magic’ with their accounting stuff, and here is the thing: WorldCom was managing to cover the truth behind its business, so according to his indictment, Mr. Scott Sullivan – former CFO – tried to move around the reserves for bad
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VII. Selling Tactics 10
VIII. Evaluation 11
IX. Conclusion 11
Background and Green Marketing Product Strategy
Greenlight Accounting is a start-up organization based in Grand Forks, ND that caters to small firms, self-employment/home businesses and military members. The owners are comprised of three retired military members, all of which have over 20+ years each in management and accounting experience and one with experience in green accounting. All are versed in the unique challenges and circumstances our service members endear on a continuous basis such as different state taxes other than the
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change requests and testing production scheduling software changesc. Approving software changes and implementing the upgraded softwared. Managing accounts payable function and revising code for accounting software to more efficiently process discount due dates on vendor invoices |
| Save Answer |
3. (Points: 0.5) |
| Internal control is often referred to as a(n) ________, because it permeates an organization's operating activities and is an integral part of management activities.a. eventb. activityc. processd. system |
| Save Answer |
4. (Points: 0.5) |
| Which of the following is accomplished by corrective controls?a. Identify the cause of the problem.b
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accounting and reporting. Just as there is an asymmetry
in litigation costs, there is an asymmetry in regulators’ costs. Standard-setters and
regulators are more likely to be blamed if firms overstate net assets than if they
understate net assets. Conservatism reduces the political costs imposed on standardsetters
The recent empirical evidence that suggests accounting conservatism not only
exists but has increased in recent years is consistent, in varying degrees, with the four
conservatism explanations. However, some of the evidence is also consistent with two
explanations that do not imply conservatism. One of those explanations is that
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* Marketing and Sales Activities
* Service Activities
Support activities sustain the primary activities:
* Firm Infrastructure (accounting and legal)
* Human Resource Management
Information Technology - Computers, ancillary equipment, software, services, and related resources as applied to support business processes.
IT Enablement - Using IT systems to enhance efficiency and effectiveness of internal or supply chain processes.
IT usage accomplishes one or more of the following objectives:
1. Increased efficiency of business processes
2. Reduced cost of business processes
3. Increased accuracy
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UKAF 1073 BUSINESS ACCOUNTING 2 – LECTURE 8 Page 1 of 2
DEFINITION OF RATIOS (TO BE USED FOR GROUP ASSIGNMENT AND FINAL EXAMINATION)
|CATEGORY |TYPES |DEFINITION |
|PROFITABILITY |Gross profit margin |Gross profit x 100% |
|(expressed in %) | |Sales
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■ firms engaged in intense competition
■ continuous improvement
■ total quality management
■ total customer satisfaction
■ sophisticated technology
33. As firms adopt new strategies to remain competitive, the cost accounting system must change to produce more accurate product costs.
34. Symptoms of an outdated cost system include the following:
■ The outcome of bids is difficult to explain.
■ Competitors’ prices appear unrealistically low.
■ Products that are difficult to produce show high profits.
■ Operational managers want to drop products that appear profitable.
■ Profit margins are hard to explain.
■ The company has a highly
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Good accounting gone bad
Principal of Accounting 1
1. Anatomy of a financial sheet
2. Financial statement errors
c. North Babylon Union Free School District
3. Sarbanes Oxley Act
4. Corporate Accountability
Accounting has been defined as "the language of business" because it is the basic tool for recording, reporting, and evaluating economic events and transactions that affect organizations. For the financial statements to be of value, it is imperative they are accurate and presented in conformity with accounting standards. As a result, it is eminent that the financial statements are accurate
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The participants of such recreational activities as hang gliding, soaring, hiking, rock collecting, or skydiving often create local ‘‘birds-of-a-feather’’ (affinity) organizations. Two examples are the Chicago sky divers (www.chicagoskydivers.com) or the soaring club of western Canada (www.canadianrockiessoaring.com). Many of these clubs collect dues from members to pay for club activities as well as the printing and mailing costs of monthly newsletters. Some of them maintain only minimal accounting information on manual pages or, at best, in spreadsheets.
a. What financial information are such clubs likely to collect and maintain? The clubs are likely to collect the member’s
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Profitability analysis framework
Volume Revenues Price Profitability Fixed Costs Variable
Terminology Revenue driver – any factor that causes a change in the total revenue of a product or service e.g. – volume of units sold, change in selling price how to measure volume? Differs by type of business – patient days for hospitals, “load” factor for airlines, sales per square feet for retailers Cost driver – any factor that causes a change in the total cost of a product or service e.g. - quality of materials, number of parts, skill of production workers, patients treated
More Terminology Variable cost – cost that changes in total in direct proportion to changes of a cost driver (e.g
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elow is my response to your problem. Thank you and good luck with your assignment.
Complete: One party completely refuses to deliver on any part of the agreed upon undertaking with another party.
Substantial: A party who fulfills most of what is agreed upon in a contract with another party, however, the party omits, refuses, or fails to fulfill the remaining conditions of the contract. A Substantial breach will bind the aggrieved party to the conditions of the contract only for the conditions already fulfilled.
Material: The failure to perform under the conditions of the contract in a significant way that the failure destroys the value of the contract. A material breach
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Contingency Plans and Exit Strategies
We try to carefully plan our operations and order product when we think our sales will be the
highest. Because we deal quite a bit in perishable goods, we need to be aware of our buying
patterns. Although we are in the process of automating the inventory and ordering process, we
have been manually controlling and monitoring product as we go along.
When our sales volume fluctuates more than 10% in either direction, that is a red flag, and we
evaluate and try to determine why we missed our expectations. Sometimes we fail to recognize
local community events that bring people into the community who then stop by the store. We
conduct a “lessons
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Part I: Communication improvement plan
Part II: Interpersonal Communication
Communication improvement plan (Part 1)
Problem: When I am speaking in class front of my classmate, I often lose my focus and use words like hmm, and ahhh to buy some time to gain my focus again on the topic that I was speaking about. I also realize some times I do not make eye contact when I am speaking to someone.
Goal: To eliminate unnecessary words such as hmm or ahh while speaking; meanwhile, have eye contact at all time.
Procedure: I will take time to record my conversation with my sibling to improve my speaking skills.
1) I will record my conversation and listen to it over and over again to
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MIG RTA State events
Agent Phone States for Totalview WFM
The following MIG Agent States will be monitored and reported into the TotalView system:
The following agent states are fixed:
For Logout, ACW and AUX, reason codes can also be appended to the event to show the ACD reason if available eg:
Each individual event must be mapped with Totalview
The general events dynamic and depend on what the agent does on the phone, they are in the format as follows:
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AMERICAN INTERCONTINENTAL UNIVERSITY
ACTIVITY-BASED COSTING & PROCESS COSTING
The Ski Pro Corporation, which produces and sells to wholesalers a highly successful line of water skis, has decided to diversify in an effort to stabilize sales throughout the year. The company is considering the production of cross-country skis. This assignment requires that a determination be made with regard to how Ski Pro should proceed in their business endeavors. Included in this assignment is an Excel spreadsheet depicting this scenario
Ski Pro must first decide whether or not to make or buy the bindings. Ski pro must look at the avoidable costs and compare
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There many people, who have trouble choosing their career, some see it easy to choose. I have an ambition is to become a successful accountant and want to choose accounting field as my career path after graduation. In accounting field, a good knowledge in accounting, constant accuracy and working experience are important for a success. Traditionally, the accounting process involves record keeping recording, classifying, reporting, and interpreting economic events. While I was in high school, I focus on classes involving math and business. Few years ago, I was more than certain that becoming a business accounting major was what I wanted. My interest in business came from my family. There a
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One who wins must tell the story. Everyone who has won wars, or accomplishes mission, etc. always seems to tell the story. In a way where the teller most likely did not finish telling the truth about the story and or lied about their way on the journey. This is where the quote by Anatole France helps you understand the quote.” We have never heard of the devil’s side of the story. God wrote the entire book”.
First of all, after looking at the quotation you can clearly say the meaning of the quote is winner’s get to tell the story and losers get to hear the winner’s side of the story. The first example is Iraq going head to head with the
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Accounting Theory Lesson 1: Accounting Under Ideal Conditions
Lesson Objectives: 1. What would accounting look like under ideal conditions? ...................................................................... 1 1.1. Ideal Conditions under Certainty ...................................................................................................... 1 1.2. Ideal conditions under uncertainty ................................................................................................... 3 2. An application of present value accounting: Reserve Recognition Accounting (RRA) .......................... 6 3. How does current value accounting match up against historical cost accounting
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Mr. Cazalno opened a laundry and dry cleaning services. Transactions for the first month of operations are the following for the month of June 2013.
June 1- Mr. Cazalno invested Cash P50,000.; Equipment P35,000.
2- He bought furnitures worth P10,000.
4- He received P5,000 worth of Cash on 2 year notes, interest to be paid and recognized upon maturity (Inquire if you want to have an interest to be post).
5- He paid utilities worth P2,000.
6- Bought supplies having a down payment of P3,000 and P5,000 on account.
9- Withdrew P15,000 cash for personal use.
10- Paid advertisement for P2,000.
11- Paid the salary of his employee worth P1,000.
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Depreciation | Depreciation and amortization |
Amortization of intangible assets | Impairment of assets |
Unlike manufacture company, Telus is a company mainly sells services. Thus, it has special kinds of expenses(we don’t call it “cost”) to match with revenue.
Telus accounting policy (note a):
* Lower: Cost v.s. Net realizeable value
* Write-downs reversed
Rogers has the same policy on inventory recognition.
(4) PPE & Intangible
There are three kinds of difference between Telus and Rogers to record PPE:
Methods | Telus | Rogers |
Straight-line | For all PPE