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Accounting 9706,41 Oct Nov 2024

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Psat Paper Lesson
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Laura Bellini

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1. Budgeting & Financial Planning | Production, Purchases, and Trade Receivables Budgets – Preparing production and purchases budgets, forecasting trade receivables, and evaluating budgetary advantages. 2. Decision Making & Cost Analysis | Material Shortages and Supplier Costs – Analyzing the financial impact of reducing production vs. purchasing materials at a higher cost, justifying the optimal decision. 3. Investment Appraisal | Internal Rate of Return (IRR) and Net Present Value (NPV) – Calculating IRR, NPV, and Accounting Rate of Return (ARR) for capital investment decisions. 4. Comparative Financial Analysis | Machine A vs. Machine B Investment Decision – Evaluating alternative investment options based on key financial metrics, advising on the most profitable choice. 5. Cost and Management Accounting | Capital Budgeting and Cost-Volume-Profit (CVP) Analysis – Applying financial evaluation techniques to business investments and operational planning. 6. Financial Decision Justification | Risk Assessment and Strategic Budgeting – Providing strategic recommendations on financial choices, considering cash flow, profitability, and long-term sustainability.
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