May 13th, 2015
Studypool Tutor
Adelphi University
Price: $20 USD

Tutor description

profit and loss statement describe

Word Count: 1585
Showing Page: 1/5
CHAPTER 5PROFIT PLANNING:OPERATING DECISIONS, MULTIPLE PRODUCTSPERSPECTIVEThis section is concerned with the estimation of costs and revenues for operating decisions. A working interpretation of "operating decisions" is that capital investment is little affected by such decisions. That is, new investment is not a material component of the operating decision under consideration. Operating decisions are made based on their effects on costs, revenues, cash flow or profitability, without regard to investment levels. Operating (OPR) decisions are the day-to-day decisions needed to implement the tactical, strategic, and long-run plans of an organization. Operating decisions tend to: (1) be repetitive, (2) have effects that are limited in scope, and (3) be reversible.THE MAJOR POINTSOperating decisions can be difficult because they are unstructured. There are no rules or procedures that specify the analysis steps. However, there is a strategy that provides an outline of an approach that you can use to analyze operating decisions. Being familiar with the activities, processes and markets involved in a decision choice is crucial to the financial analysis.First, clearly identify the decision alternatives at hand. The objective is to analyze the revenues and costs of each alternative so you can recommend one. Because the analysis depends on the choices available, you simply must start with a clear understanding of each alternative. Returning to the past is sel

Review from student

Studypool Student
" AMAZING as always! "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1821 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors