Acc 561 Guillermo Wk 1
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- Date Submitted: 08/29/2010 07:15 PM
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Guillermo Furniture Store
University of Phoenix
Guillermo’s Furniture Store is located in Sonora, Mexico, owned by Guillermo Navallez. The company is currently experiencing many business activities. Those actives include the principles of finance and the ability to recognize financial incremental costs and benefits, options, and actions. This paper will present how these accounting activities could benefit to Guillermo Furniture Store.
Budgets and Performances Reports
Guillermo can use budgets and performance reports in his decision-making process. The principles of finance describe typical behavior in financial transactions and provide guidance for decision making. Decision-making is not a separate function from management. The fact is decision-making is tied together with the other functions, such as Coordinating, Planning, and Controlling. Management decision making is often a matter of comparing two or more alternative courses of action. Through this process Guillermo would be able to determine the financial difference between the alternatives is to identify the differential costs and revenues. To recognize differential cost (differential revenue) is the difference in total cost (revenue) between two alternatives. When managers analyze the differential costs between a given alternative, often the status quo (that is, the existing situation), and a proposed alternative, they often refer to this as incremental analysis. Incremental (additional) costs and benefits of the proposed alternative compared with the given alternative. Incremental benefits are the additional revenues or reduced costs generated by the proposed alternative. When there are multiple alternative courses of action, managers often compare one particular action against the entire set of alternatives. Outlay cost requires a future cash disbursement. Outlay costs include costs for items such as materials and labor. Opportunity cost applies to a resource that a company...
University of Phoenix
Guillermo’s Furniture Store is located in Sonora, Mexico, owned by Guillermo Navallez. The company is currently experiencing many business activities. Those actives include the principles of finance and the ability to recognize financial incremental costs and benefits, options, and actions. This paper will present how these accounting activities could benefit to Guillermo Furniture Store.
Budgets and Performances Reports
Guillermo can use budgets and performance reports in his decision-making process. The principles of finance describe typical behavior in financial transactions and provide guidance for decision making. Decision-making is not a separate function from management. The fact is decision-making is tied together with the other functions, such as Coordinating, Planning, and Controlling. Management decision making is often a matter of comparing two or more alternative courses of action. Through this process Guillermo would be able to determine the financial difference between the alternatives is to identify the differential costs and revenues. To recognize differential cost (differential revenue) is the difference in total cost (revenue) between two alternatives. When managers analyze the differential costs between a given alternative, often the status quo (that is, the existing situation), and a proposed alternative, they often refer to this as incremental analysis. Incremental (additional) costs and benefits of the proposed alternative compared with the given alternative. Incremental benefits are the additional revenues or reduced costs generated by the proposed alternative. When there are multiple alternative courses of action, managers often compare one particular action against the entire set of alternatives. Outlay cost requires a future cash disbursement. Outlay costs include costs for items such as materials and labor. Opportunity cost applies to a resource that a company...