Question

For Accounting firm, or a cabinets compay, or just in general, talk about the accoutning tool kits - Learning curve, Regression, Supporting cost Allocation, Joint Cost, Processing cost, Flxiable budget variance, ABC. Talk about why are they useful. And you can do a little bit evaluation or assessment of whether it is or what do you think this is useful tools for this scenario. I offer my options, but you don't have to agree with me. In fact if you disagree with me, present your evidence.

Answer 1

Accounting tool kits are very useful to the accountants and management of an organization as the tool kits provide the accountants and management with important information about the financial performance and financial position of an organization. Supporting cost allocation, joint costs provide information about the costs of different products based on which the management can decide the selling price of different products correctly. Budget help management to assess and estimate the expected future performance based on which necessary course of actions can be taken to improve the financial performance and position of an organization in the future. ABC helps the management to correctly allocate the overheads in different products and services to correctly calculate the cost of different products and services. Accounting tools kits not only help the accountants to keep proper records of financial information but also help the management in managing an organisation better. Thus, it is important to have accounting tools in place to make effective use of these for managerial and accounting purposes.