logo image

?he association of financial (money) flows Essay

The discovery and application of cost and revenue behavior patterns are relevant in producing information for all types of management decisions in Waitrose Ltd. As noted earlier, one important task of managerial accounting is the association of financial (money) flows with the resource flows that are expected from various decision alternatives (Callahan 3). Costs measured in money terms are associated with these alternatives in order to evaluate them in the context of the enterprise’s long-run goal, which is profit maximization.

The basis of associating these costs in Waitrose Ltd with particular decision alternatives is usually cost behavior patterns derived by the cost behavior analysis. A cost behavior pattern is a functional relationship between various activities or events that represent a decision alternative and the expected cost to be incurred in connection with that alternative (Berry 5). Cost behavior analysis, on the other hand, is the process of the discernment and the description of the forms of these cost behavior patterns.

How are cost behavior patterns used in managerial decision making of Waitrose Ltd? First, the cost-behavior implications of various activities and events are used in constructing an overall cost-function for a decision alternative or variable (Garrison 5). Then the cost function (usually

Need essay sample on "?he association of financial (money) flows"? We will write a custom essay sample specifically for you for only $ 13.90/page

together with a revenue function) is manipulated to generate decision-relevant information about the alternative or variable.

Since most of the managerial decision making focuses on the production and sales of products and services, the frequent concern of accountants of Waitrose Ltd is on the use of cost behavior patterns in supplying information for decisions on production and sales. This type of application is called the cost-volume-profit analysis or break-even analysis. This is frequently used in practice and is the most appropriate context in acquainting the reader with the application of cost behavior patterns.

Can’t wait to take that assignment burden offyour shoulders?

Let us know what it is and we will show you how it can be done!
Sorry, but copying text is forbidden on this website. If you need this or any other sample, please register

Already on Businessays? Login here

No, thanks. I prefer suffering on my own
Sorry, but copying text is forbidden on this website. If you need this or any other sample register now and get a free access to all papers, carefully proofread and edited by our experts.
Sign in / Sign up
No, thanks. I prefer suffering on my own
Not quite the topic you need?
We would be happy to write it
Join and witness the magic
Service Open At All Times
Complete Buyer Protection
Plagiarism-Free Writing

Emily from Businessays

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out https://goo.gl/chNgQy

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy