Month: May 2009

Append below describes the advantages and disadvantages of the following type of organization structure: · Functional Structure · Divisional Structure · Matrix Structure DIVISIONAL STRUCTURE Divisional structures are popular among organizations with diverse operations cutting across many products, areas, and customers Major Advantages Of Divisional Structure Includes: · greater flexibility in responding to environmental changes … Read more

Append below describes the advantages and disadvantages of the following type of organization structure: · Functional Structure · Divisional Structure · Matrix Structure FUNCTIONAL STRUCTURE Salient points: · Functional structures typically work well for smaller and less complex organizations dealing with only one or a few products or services. · Also work best in relatively … Read more

Question: Generally when the term “ Cost” is mentioned, it encompassed a wide ranging meanings and also that this term is being used in different situations. So can we basically classify certain BASIC COST TERMS that are commonly used in the cost and management accounting books? Answer: As earlier mentioned, the term “ COST” is … Read more

I have been asked by Management to set up a good Cost And Management Accounting System but the first thing I have to understand are or is the main purposes/objectives of having a Cost And Management Accounting System? Answer: The system should at least meeting the following requirements: · To allocate costs between cost of … Read more

    International Trade BASICS of Foreign Exchange 1.0 Introduction to Foreign Exchange 2.0   3.0 What are the determinants of foreign exchange 4.0 Commonly used terms in foreign exchange transactions 5.0         International Trade HARDER ASPECTS of Foreign Exchange ( in my other accounting site) 1.0 Foreign Exchange Management:Before even we … Read more

When trading foreign exchanges, whether amongst the dealers or dealer/client, we often hear technical terms that are tuned to the language used in the foreign exchange market. Append below are some of the commonly used terms.     Commonly Used Terms In Foreign Exchange Transactions Arbitrage:   ·          refers to simultaneous buying and selling of … Read more

In earlier part 1, we have a brief introduction of what are foreign exchange transactions, foreign exchange rate and market. So what determines a country’s foreign exchange rate? Append below are some three(3) major factors that determines or have an important impact on future exchange rate movements in a country’s currency: (A) PRICE INFLATION Salient … Read more

We often hear terms like foreign exchange transactions and foreign exchange rates. Simply foreign exchange transactions are exchanges of one currency for another as each country has its own national currency or monetary unit. And an exchange rate is the rate at which one currency can be exchange for another. It is the price of … Read more

Many companies whether small or medium are seeking competitive advantage through quality. This is evidenced by: ·     Management incorporate quality values into day-to-day management ·     Companies worked together with their suppliers to improve quality of their goods and or services ·     Companies trains workers in quality techniques and has systems to ensure high quality products … Read more

I work in a medium size company. It is budget time. Is it necessary for me to prepare a Capital Expenditure Budget. Can you tell me the importance the benefits derived from preparing such budget? Answer: As we understand that the role of a capital expenditure budget is to take account of all expenditures that … Read more