Question

Describe at least four decision scenarios within the Coca- Cola Company that would relect/ use managerial accounting concepts (example: Breakeven analysis)

Answer 1

The four managerial accounting concepts decision making scenarios in the Coca-Cola company are:

1) Inventories: The managerial accounting concept on the valuation of Inventories is :
valued at the lower of cost or net realisable value.
the cost is determined on the basis of the average cost or FIFO Methods.
2) Advertising costs: All the advertising and marketing expenditures that is benefiting
multiple interim periods is distributed to the each benefitial period and reported accordingly.
3) Revenue recognition : The revenues are recognised with evidence of arrangement, delivery
of products has occurred. The sales price charged is fixed and its collectibility is reasonably assured.
4) Investments in Equity and Debt securities : The equity method of the investments in equity
securities of other organisation as gives the ability to exercise significant influence over operating
and financial policies of the investee. The share of equity income or loss is booked under the
consolidated statements.