am cycle 7 session 10

7/23/2019 AM Cycle 7 Session 10

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Copyright © Amity University1

PAN African eNetwork Project

Diploma in Business Management (DBM)

Accounting for Managers

Lecture – 10

Dr. Adarsh Arora



Copyright © Amity University

Topics Covered

• Budget & Advantages of budgets• Types of budgetary control

• Budgetary control methods

• Features of a good budget

• Types of budget

• Cost reduction and control

• Financial analysis

•b!ectives of ratio analysis• "atio analysis

• #i$uidity

• Acid test

• %nvestment




• Financial ratios

• #imitations of ratio analysis

• Fund flo statement

• Components of balance sheet

• 'ources and uses of or(ing capital

• Fund flo statement

• b!ects of fund flo statement

• )reparation of fund flo statement

• *C+,s




Budgetary Control Metods

a- Budget!

A formal statement of the financial resources set aside for

carrying out specific activities in a given period of time.

%t helps to co/ordinate the activities of the organisation.

An e0ample ould be an advertising budget or sales force

budget.

") Budgetary control!

A control techni$ue hereby actual results are compared

ith budgets.

Any differences variances- are made the responsibility of

(ey individuals ho can either e0ercise control action or

revise the original budgets.




Budgetary control and responsi"ility centres#

These enable managers to monitor organisationalfunctions.

A responsi"ility centre can be defined as any functional

unit headed by a manager ho is responsible for the

activities of that unit.




There are four types of responsibility centres2

a- Revenue centres

rganisational units in hich outputs are measured in

monetary terms but are not directly compared to input

costs.

b- Expense centres

Units here inputs are measured in monetary terms but

outputs are not.

c- Profit centres

3here performance is measured by the difference beteen

revenues outputs- and e0penditure inputs-. %nter/

departmental sales are often made using 4transfer

prices4.




d- Investment centres

3here outputs are compared ith the assets employed inproducing them5 i.e. "%.


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Advantages of "udgeting and "udgetary control

There are a number of advantages to budgeting andbudgetary control2

• Compels management to thin( about the future5 hich is

probably the most important feature of a budgetary

planning and control system. Forces management toloo( ahead5 to set out detailed plans for achieving the

targets for each department5 operation and ideally- each

manager5 to anticipate and give the organisation purpose

and direction.• )romotes coordination and communication.

• Clearly defines areas of responsibility. "e$uires

managers of budget centres to be made responsible for

the achievement of budget targets for the operations



under their personal control.

• )rovides a basis for performance appraisal varianceanalysis-. A budget is basically a yardstic( against hich

actual performance is measured and assessed. Control

is provided by comparisons of actual results against

budget plan. 6epartures from budget can then beinvestigated and the reasons for the differences can be

divided into controllable and non/controllable factors.

• 7nables remedial action to be ta(en as variances

emerge.• *otivates employees by participating in the setting of

budgets.



• %mproves the allocation of scarce resources.

• 7conomises management time by using themanagement by e0ception principle.



Caracteristics of a $ood "udget

A good budget is characterised by the folloing2

• )articipation2 involve as many people as possible in

draing up a budget.

• Comprehensiveness2 embrace the hole organisation.

• 'tandards2 base it on established standards of

performance.

• Fle0ibility2 allo for changing circumstances.

• Feedbac(2 constantly monitor performance.

• Analysis of costs and revenues2 this can be done on the

basis of product lines5 departments or cost centres.



Types of Budget

• Firstly5 determine the principal budget factor. This is also(non as the (ey budget factor or limiting budget factor

and is the factor hich ill limit the activities of an

underta(ing. This limits output5 e.g. sales5 material or

labour.a- 'ales budget2 this involves a realistic sales forecast. This

is prepared in units of each product and also in sales

value. *ethods of sales forecasting include2

• sales force opinions• mar(et research

• statistical methods correlation analysis and e0amination

of trends-

• mathematical models.



b- )roduction budget2 e0pressed in $uantitative terms only

and is geared to the sales budget.The production manager8s duties include2

• analysis of plant utilisation

• or(/in/progress budgets.

%f re$uirements e0ceed capacity he may2

• 'ubcontract

• plan for overtime

• introduce shift or(• hire or buy additional machinery

• The materials purchases budget8s both $uantitative and

financial.



c- "a materials and purchasing budget2

• The materials usage budget is in $uantities.

• The materials purchases budget is both $uantitative and

financial.

Factors influencing a- and b- include2

• production re$uirements

• planning stoc( levels

• storage space

• trends of material prices.



d- #abour budget2 is both $uantitative and financial. This is

influenced by2• production re$uirements

• man/hours available

• grades of labour re$uired

• age rates union agreements-

• the need for incentives.

e- Cash budget2 a cash plan for a defined period of time. %tsummarises monthly receipts and payments. 9ence5 it

highlights monthly surpluses and deficits of actual cash.

%ts main uses are2

• to maintain control over a firm8s cash re$uirements5 e.g.



stoc( and debtors

• to enable a firm to ta(e precautionary measures andarrange in advance for investment and loan facilities

henever cash surpluses or deficits arises

• to sho the feasibility of management8s plans in cash

terms• to illustrate the financial impact of changes in

management policy5 e.g. change of credit terms offered

to customers.



Cost %eduction and Control

• Control is the process by hich management ensuresthat the company is confirming to prescribe plans and

policies in or(ing toards the attainment of corporate

ob!ectives.

• The central features of control is not coercion as is sooften thought5 nor is it the detail study of past mista(es5

but rather the focusing of attention on current and future

activities to ensure that they are performed in

accordance ith management ishes.• The e0istence of a control process enables management

to (no from time to time here the company stand in

relation to a predetermined and desirable future position.



• )rogress toards ob!ectives must be observed5

measured5 and directed if these ob!ectives are to beachieved/this is the function of control.

Control and planning are complementary they are the

to sides of the same coin.



D&&'%'C' B'T'' C*+T C*T%*L AD C*+T

%'D,CT-*

Cost Control is concerned ith (eeping costs at their planned

level i.e.: confirming in so far as possible ith e0isting

standard and plans-.

%n contrast5 cost reduction is concerned ith setting cost

levels at minimum acceptable level by loo(ing as ays of

improving the levels at the minimum acceptable level by

loo(ing at ays of improving the standards that provide the

benchmar(s for cost control.

Cost reduction may be achieved by value engineering

techni$ues5 method study5 or( measurement techni$ues5

incentive scheme5 revised layouts5 etc.



%f management misguidedly sets cost standards that are

beyond attainable by current methods5 etc5 this ill notlead to cost reduction2 poor morale is a more li(ely to

outcome5 ith resultant labour problems.

Conversely5 if loose standards are set i.e.: standards that

can be attained by a poor level of performance- costcontrol may be effective5 but the overall level of costs ill

be at a most inefficient level.

%t has been established that control must be e0ercised overthe level of cost performance5 and this re$uire a

consideration of both direct and indirect costs.



Financial Analysis

• Assessment of the firm,s past5 present and

future financial conditions

• 6one to find firm,s financial strengths and

ea(nesses

• )rimary Tools2

; Financial 'tatements

; Comparison of financial ratios to past5

industry5 sector and all firms



b!ectives of "atio Analysis

• 'tandardi<e financial information for

comparisons

• 7valuate current operations

• Compare performance ith past performance

• Compare performance against other firms or

industry standards

• 'tudy the efficiency of operations

• 'tudy the ris( of operations



"atio Analysis



"atio Analysis

1. Li/uidity ; the ability of the firm to pay its ay

. -nvestmentsareolders ; information to enable

decisions to be made on the e0tent of the ris( and the

earning potential of a business investment

2. $earing ; information on the relationship beteen the

e0posure of the business to loans as opposed to share

capital

3. 4rofita"ility ; ho effective the firm is at generating

profits given sales and or its capital assets

5. &inancial ; the rate at hich the company sells its

stoc( and the efficiency ith hich it uses its assets



#i$uidity



Acid Test

• Also referred to as the =+uic( ratio,

• (Current assets – stoc6) ! lia"ilities

• 121 seen as ideal

• The omission of stoc( gives an indication of the cash thefirm has in relation to its liabilities hat it oes-

• A ratio of >21 therefore ould suggest the firm has >

times as much cash as it oes ; very healthy?

• A ratio of @.21 ould suggest the firm has tice as manyliabilities as it has cash to pay for those liabilities. This

might put the firm under pressure but is not in itself the

end of the orld?




Current "atio

Current %atio 7 Current Assets ! Current Lia"ilities

• %deal level ; 2 1

• A ratio of 2 1 ould imply the firm has of assets to

cover every 1 in liabilities• A ratio of @.D 2 1 ould suggest the firm has only Dp in

assets available to cover every 1 it oes

• Too high ; *ight suggest that too much of its assets are

tied up in unproductive activities ; too much stoc(5 fore0ampleE

• Too lo / ris( of not being able to pay your ay




%nvestment'hareholder




• 'arnings per sare ; profit after ta0 number of

shares• 4rice earnings ratio ; mar(et price earnings per

share ; the higher the better generally for company.Comparison ith other firms helps to identify value

placed on the mar(et of the business.• '8 'B-TDA %atio / 7nterprise Galue 7B%T6A

ratio / the higher the better generally for company .%t measures the operational performance of the firm.

• Dividend yield ; ordinary share dividend mar(etprice 0 1@@ ; higher the better. "elates the returnon the investment to the share price.




)rofitability




• )rofitability measures loo( at ho much profit

the firm generates from sales or from its capitalassets

• 6ifferent measures of profit ; gross and net ; $ross profit ; effectively total revenue turnover- ;

variable costs cost of sales-

; et 4rofit ; effectively total revenue turnover- ;variable costs and fi0ed costs overheads-

• $ross 4rofit Margin 7 $ross profit turnover 9 100

• The higher the better • 7nables the firm to assess the impact of its sales and

ho much it cost to generate produce- those sales.




• et 4rofit Margin 7 et 4rofit Turnover9 100

• Het profit ta(es into account the fi0ed

costs involved in production ; theoverheads

• Ieeping control over fi0ed costs is

important ; could be easy to overloo( fore0ample the amount of aste / paper5stationery5 lighting5 heating5 ater5 etc.




• %eturn on Capital 'mployed (%*C') 7

4rofit capital employed 9 100

• The higher the better

• 'hos ho effective the firm is in using itscapital to generate profit

• A "C7 of J means that it uses every

1 of capital to generate p in profit




Financial "atio




Assets Turnover • Asset Turnover 7 +ales turnover assets

employed

• Using assets to generate profit

• Asset turnover 0 net profit margin K "C7• +toc6 turnover 7 Cost of goods sold stoc6 e9pressed as times

per year

• The rate at hich a company,s stoc( is turned over

• A high stoc( turnover might mean increased efficiencyE

; But2 dependent on the type of business ; supermar(ets might have

high stoc( turnover ratios hereas a shop selling high value

musical instruments might have lo stoc( turnover ratio

; #o stoc( turnover could mean poor customer satisfaction if

people are not buying the goods *ar(s and 'pencerE-




• #iabilities have Credit balance and Assets have 6ebit

balance• Current #iabilities are those hich have either become

due for payment or shall fall due for payment ithin 1

months from the date of Balance 'heet

• Current Assets are those hich undergo change in theirshapeform ithin 1 months. These are also called

3or(ing Capital or Lross 3or(ing Capital

• Het 3orth & #ong Term #iabilities are also called Long

Term Sources of Funds

• Current #iabilities are (non as Short Term Sources of

Funds




• #ong Term #iabilities & 'hort Term #iabilities are

also called Outside Liabilities

• Current Assets are Short Term Use of Funds

• Assets other than Current Assets are Long Term

Use of Funds• %nstallments of Term #oan )ayable in 1 months

are to be ta(en as Current #iability only for

Calculation of Current "atio & +uic( "atio.

• %f there is profit it shall become part of et ort

under the head "eserves and if there is loss it ill

become part of -ntangi"le Assets.




•%nvestments in Lovt. 'ecurities to be treatedcurrent only if these are mar(etable and due.

%nvestments in other securities are to be treated

Current if they are $uoted. %nvestments in

alliedassociatesister units or firms to be treatedas on:current.

• Bonus 'hares as issued by capitali<ation of

Leneral reserves and as such do not affect the

Het 3orth. 3ith "ights %ssue5 change ta(esplace in Het 3orth and Current "atio.




a. Het 3orth 2 Capital M "eserve K @@

b. Tangible Het 3orth is 2 Het 3orth / Loodill K 1@

c. utside #iabilities 2 T# M CC M Creditors M )rovisions K N@@

d. Het 3or(ing Capital 2 C A / C # K >@ / @ K @

e. Current "atio 2 C A C # K >@ >@@ K 1.1D 2 1

f. +uic( "atio 2 +uic( Assets C # K @@>@@ K @.NN 2 1LIABILITES ASSETS

Capital 180 Net Fixed Assets 400

Reserves 20 Inventories 150

Term Loan 300 Cash 50

an! C"C 200 Re#eiva$les 150

Trade Creditors 50 %ood&ill 50

'rovisions 50

800 800




LIABIITIES ASSETS

()*it+ Capital 200 Net Fixed Assets 800

're,eren#e Capital 100 Inventor+ 300

Term Loan -00 Re#eiva$les 150

an! CC ./+p 400 Investment In %ovte#*

50

*ndr+ Creditors 100 'reliminar+ (xpenses 100

Total 1400 1400




'ollution2/

1. De"t '/uity %atio ill be 2 N@@ @@M1@@- K 2 1

. Tangi"le et ort 2 nly e$uity Capital i.e. K @@

>. Total utside #iabilities Total Tangible Het 3orth 2

N@@MO@@M1@@- @@K 112

O. Current "atio ill be 2 >@@ M 1@ M @ - O@@ M 1@@ -

K 1 2 1




'9ercise ! 4rofit to sales is ; and amount of profit is say %s.5 Lac.

Ten at is te amount of +ales <

Anser 2 Het )rofit "atio K Het )rofit 'ales - 0 1@@

K 01@@- 'ales

Therefore 'ales K @@ K "s.@ #ac

'9ercise ! A Company as et ort of %s.5 Lac= Term Lia"ilities of

%s.10 Lac. &i9ed Assets >ort %+.1? Lac and Current Assets are %s.5

Lac. Tere is no intangi"le Assets or oter on Current Assets.

Calculate its et or6ing Capital. Ans>er

Total Assets K 1N M K "s. O1 #ac

Total #iabilities K H3 M #T# M C# K M 1@M C# K O1 #ac

Current #iabilities K O1 ; 1 K N #ac

Therefore et or6ing Capital 7 C. A – C.L

7 5 – ? K / -1 Lac




'9ercise . From the folloing financial statement calculate i- Current "atio ii- Acid test

"atio iii- %nventory Turnover iv- Average 6ebt Collection )eriod v- Average

Creditors, payment period.C.Assets

'ales 1@@ %nventories 1

Cost of sales 1@@@ 6ebtors @

Lross profit @@ Cash

C. #iabilities

Trade Creditors @@

i- Current "atio 2 N@@@@ K > 2 1

ii- Acid Test "atio 2 6ebtorsMCash Trade creditors K OD@@ K .O 2 1

iii- %nventory Turnover "atio 2 Cost of sales %nventories K 1@@@1 K P times

iv- Average 6ebt collection period 2 6ebtorssales- 0 >N K @1@@-0>N K N1 daysv- Average Creditors, payment period 2 Trade CreditorsCost of sales- 0 >N

@@1@@- 0 >N K D> days




"atios help to2 ; 7valuate performance ; 'tructure analysis ; 'ho the connection beteen activities and

performance

Benchmar( ith ; )ast for the company ; %ndustry

"atios ad!ust for si<e differences




#imitations of "atio Analysis

• A firm,s industry category is often difficultto identify

• )ublished industry averages are only

guidelines• Accounting practices differ across firms• 'ometimes difficult to interpret deviations

in ratios

• %ndustry ratios may not be desirabletargets

• 'easonality affects ratios




Fund Flo 'tatement

It is #ontin*o*s pro#ess The st*d+ and#ontrol o, this ,*nds,lo& pro#ess .ie The*ses and so*r#es o, ,*nds is the main

o$6e#tive o, ,inan#ial mana7ement toassess the so*ndness o, the solven#+ o,the enterprise

• The funds statement as also (non as a

Qstatement of funds floR or a Qstatement ofsources and applications of fundsR.




• This statement as deemed to be

necessary as the balance sheet and

income statement did not present a

complete picture of an entity,s economic

activities• The statement as seen as necessary to

summarise investing and financing

activities




*eaning of Fund Flo

• The term of =Funds Flo, has made up

ith the to ords ; Funds and Flo of

funds. #et us first e understand these

meaning and then e see ho funds flostatement is prepared.




T97 T"7* =FUH6, %' U'76

%H T9"77 '7H'7' ;

CASH -

%n narro sense5 the term =fund, is used to

mean only the cash and ban( balance.

or6ing Capital –

%n popular sense5 the term =Fund, is used tomean or(ing capital i.e. the e0cess of

current assets over current liabilities.

Therefore5 in this sense5 fund flo statementincludes all the transactions affecting current

assets and current liabilities.

C*)H7HT' F




C*)H7HT' F

BA#AHC7/'977T

1. *:C,%%'T L-AB-L-T-'+ ; These liabilities are not payable ithin a

year and out of current assets. These

liabilities are generally payable either in

the long/period or at the close of thebusiness.

. Current #iabilities2/ These liabilities are

payable ithin a year and out of currentassets. The values of these liabilities

generally changes ithin one year.




>. Hon/current Assets2/ Those assets hich

are obtained in business for use over a

long period of time for earning purpose are

called non/current assets. These assets

are not purchased for the purpose ofselling and include tangible5 intangible and

fictitious.




O. Current Assets2/These assets are e$ual

to cash or reasonably e0pected to be

reali<ed in cash or sold or consumed

ithin one year or during the normal

operating cycle of the business are calledcurrent assets.




*eaning of Flo

• The term =Flo, means changes ; incoming and

outgoing. 3hen this term is used ith funds5 it

means the changes ta(ing place in funds during

a certain period. 3henever there is change inthe funds5 it is presume that flo in funds has

ta(en place.

• Transactions that bring or(ing capital into the

firm are sources of funds and on the contrary5 ifthe or(ing capital decreases5 it is an

application of funds.

T"AH'ACT%H' T9AT 3%##





AFF7CT T97 F#3 F FUH6'

The folloing transactions ill bring the change in

the or(ing capital ;• Current Assets and Hon/Current Assets

• Current Assets and Hon/Current #iabilities• Current #iabilities and Hon/Current #iabilities• Current #iabilities and Hon/Current Assets

%n brief5 it can be said that hen one aspect is of

non/current category5 and the other currentcategory5 there ill be flo in funds.






HT AFF7CT T97 F#3 F FUH6'

1. Current Assets and Current Lia"ilities

. on:Current Assets and on:Current

Lia"ilities

2. on:Current Lia"ilities or on:CurrentAssets.

' d U f




'ources and Uses f

3or(ing Capital

'U"C7'• Funds from business ps• ther %ncomes• 'ale of non/current assets• #ong term borroings• %ssue of additional e$uity or preference capital.

U'7' F 3C• #osses from business ops• )urchase of non/current assets• "edemption of debenturespreference shares.• 6ividends to shareholders

*7AH%HL F FUH6' F#3




*7AH%HL F FUH6' F#3

'TAT7*7HT

Te &unds flo> statement (&&+) is a financial

statement >ic reveals te metods "y

>ic te "usiness as "een financed and

o> it as used its funds "et>een teopening and closing Balance:+eet dates.

-t studies – from >ere te funds ave "een

received and >ere te funds ave "een

used.

b! t f F d




b!ects of Fund

'tatements

Folloing $uestions are ansered by Funds Flo

'tatement /

1. 3here the profit is put upE

. 3hy net current assets are lo even thoughthere is an increase in net profitE %n other

ords5 hy cash balance has not increased.

>. 3hy e0cess dividend as distributed hen

there ere lo profitsEO. 9o is the amount reali<ed from the sale of

assets usedE




. 9o ere the changes in 3or(ing Capital

N. 9o ere the plant and machinery e0pandedE

D. 9o as the amount received from the issue of

shares of debentures usedE

P. 3hy the funds ere not available for thepurchase of machinery and plantE

%mportance of Fund Flo




%mportance of Fund Flo

'tatement

1. Financial Analysis and Control

. Financial )lanning and Budget preparation

>. Useful to Ban(ers and *oney #enders

O. 9elpful in Comparative 'tudy. Inoledge of *anagerial )olicies

N. Inoledge of Business )roblems

D. 6ividend )olicy

)reparation of Fund Flo




)reparation of Fund Flo

'tatement

• Funds flo statement can be prepared monthly butusually it is prepared for one5 to5 three5 four or

more years.

• The data for the preparation of this statement are

obtained form to balance sheets supplemented bysuch other information from the accounts as may

be needed.

• %t is customary for accompany to use the figures of

the balance sheet for the latest year and those onthe balance sheet as at the beginning of the period

for hich this statement is to be prepared.




)reparation of funds flo statement is divided into

three parts.

1. 'chedule of Changes in 3or(ing Capital:

. Funds from peration:>. Funds Flo 'tatement

'TAT7*7HT F C9AHL7' %H




'TAT7*7HT F C9AHL7' %H

3"I%HL CA)%TA#

• This statement is prepared from current

assets and current liabilities in order to

calculate the increase or decrease in

or(ing capital and is prepared in the)erforma given as under.

STATEMENT OF CHANGES IN WORKING CAPITAL




)articulars )revious

Sear Fig."s.@@P-

Current

Sear Fig."s.@@-

Changes

in currentassets

and

liabilities

%ncr/

ease

6ecre

/ase

Current Assets 2

Cash

6ebtors

'toc(sBill "eceivables

Advance payment

Accrued income

*ar(etable 'ecurities or

'hort/term %nvestment

Contd




Contd..)revious

Sear Fig.

"s.@@P-

Current

Sear Fig.

"s.@@-

Change in

current andliabilities

)articulars

%n.

M-

6ec.

/-

Current #iabilities2

Creditors

Bills )ayable

Ban( verdraft

utstanding 70penses

'hort/term

#oan etc.

%ncrease or6ecrease in 3or(ing

Capital

The folloing rules may be applied to




The folloing rules may be applied to

current assets and current liabilities

for preparing this statement2

1. An increase in current assets5 increases

or(ing capital

. A decrease in current assets5 decreases

or(ing capital>. An increase in current liabilities5

decreases or(ing capital

O. A decrease in current liabilities5 increasesor(ing capital




FUH6' F#3 'TAT7*7HT

This statement is usually prepared in QTR form.

#eft/hand side is for sources of funds and

right/hand side for applications of funds. Theitems of sources and applications are given

as follos2

Contd.




The folloing are the sources from hich funds

come2

1.Funds from operations

.%ncome from investments

>.%ssue of shares and debentures

O."aising a loan

.'ale of fi0ed assets and long/term investmentsN."eceipt of interest on non/trade investment5

dividend5 refund of ta0 etc.

D.6ecrease in or(ing capital etc.

Sources of Funds:

Uses or Applications- of funds2




Uses or Applications- of funds2

The folloing are the various purposes for

hich funds can be used2

1.Funds lost in operations

."epayment of long/term loans

>."edemption of preference shares and

debentures

O.)urchase of fi0ed assets.)urchase of long/term investments

FUH6' F"* )7"AT%H'




%t can be calculated in to forms 2 4articulars

Het )rofit for Current Sear Add ! Hon fund items

6epreciation Loodill5 )atents

)reliminary 70penses3ritten off

L'++ ! Hon/fund %tems andHon/trading %ncome5already Credited to ) & #

Ac.6ividend "ecevied)rofit on sale Funds fromoperations

Amount %s.

Amount %s.




MC@s

@1 *anagement accounting analyses accounting data iththe help of2/

a- Auditors

b- 'tatutory forms

c- Tools & Techni$ues

d- Hone of these




@ *anagement Accounting is suitable for2/

a- #arge industrial & trading concernsb- small business

c- Co/operative societies

d- Hon/profit organi<ations




+>. 3hich of the folloing can improve the margin of

safetyEa- #oering the fi0ed cost

b- loering the variable cost so as to improve marginal

contribution.

c- increasing volume of sales5 if there is available capacity.d- All a-5 b- & c- above




+O. Brea( even sales is

a- The sales re$uired to earn a particular amount of profit.b- The sales at hich there is neither profit nor loss.

c- The sales e$ual to amount of fi0ed e0penses incurred by

the company.

d- Hone of the above.




+ Under "esale )rice *ethod price of the product is

determined by2a- Adding profit margin to selling price for the product.

b- adding an appropriate mar(up to the cost of the product

c- by subtracting an appropriate gross mar(up from the

sale price to an unrelated third partyd- none of the above




+N Cost Centre is2

a- A responsibility centre in hich inputs5 are measured inmonetary terms.

b- A responsibility centre in hich outputs are measured in

monetary terms.

c- A responsibility centre in hich assets employed5 aremeasured in monetary terms.

d- All of the above



Than( Sou

)lease forard your $uery

To2 aaroraVamity.edu

mailto:[email protected]

mailto:[email protected]

am cycle 7 session 10

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