Category Archives for Managerial Accounting

Relevant range and cost behavior analysis

What is relevant range? Relevant range is one of those REALLY important concepts in managerial accounting. It’s pretty major but it does not get the attention it deserves. Most professors and authors

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Return on Investment: Investment Center Performance Evaluation

An investment center includes profit and the efficient use of assets. The traditional performance reports only measure revenue and expenses. We need a way work assets into the evaluation. Typically when

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Performance Evaluation Reports for Cost, Revenue, and Profit Centers

Performance evaluation requires managers to have a benchmark to use as a guide for future periods. This benchmark is communicated to managers via a budget for their responsibility center. At the end of

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Responsibility Centers

As managers get more decision making responsibilities because of decentralized management, organizations must find ways to evaluate those managers in an effective way. The first step in the process is

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Sell or Process Further

The sell or process further decision type is mainly applicable to farms and producers of natural resources. These businesses must decide to sell farm products or natural resources as is or turn that inventory

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