Foundations of Accounting 2 Essay Example | Topics and Well Written Essays - 1500 words

Foundations of Accounting 2 - Essay Example The cash flow is not an estimate of your sales and expenses; rather it is an estimate of when the money associated with sales or in any other income generating account will be received and when the money paying the expenses will be paid out. Budgeted Profit and Loss differs from a budgeted cash inflow or outflow where much of the data for the budgeted income statement come from other budgets already prepared. For example, sales figures come from the sales budget. Cost of goods sold is based on unit cost of production (and the direct materials budget). The direct labour budget provides labour cost information. And the manufacturing overhead budget provides overhead cost information. While that of a cash budget, it merely provides a forecast of cash disbursements and cash realization. D) PRINCIPLES OF GOOD BUDGETING ARE NOT ALWAYS FOLLOWED IN PRACTICE because of different types of constraints. One of which is the financial stability of the business and of the industry. Rising prices and rising costs of different materials for a manufacturing business, for example, has one of the greatest effects on the business, it has to make the company cut its expenses and therefore has a direct effect on the forecasted financial statement. Even though there are several ways in making sure that projections do happen, it is still subjected to uncertainty the occurrence of which can greatly affect the financial standing of the company. There are also instances that a good budget is not always effective when there is a personal interest involved in the project, that is, management or any person attached to a certain project has its own personal goal that is detrimental to the company. Therefore, proper ‘attitude’ should be observed and there must be a common goal towards a certain action. E) ESTIMATING SALES FOR THE NEXT ACCOUNTING PERIOD is done thru a forecast or a budget. Sales forecasting is

Finish the part of "Market Structure and Competitive Analysis in Essay

Finish the part of "Market Structure and Competitive Analysis in Nigeria" (2 pages, need references) - Essay Example e market size for solar energy in Nigeria has been hampered by the high percentage of the Nigerian population who lack access to the nation’s power grid. In recent years, the figure has been placed at close to 55 %, which has greatly limited the growth of the solar energy industry in Nigeria. However, the 2010 governmental reforms on the country’s power sector have improved the use of solar power energy in a bid to increase the standard of living of millions of Nigerians. Mind you, the country is estimated to have a population of close to 175 million people. The biggest competitors of Amazing Solar Inc.’s product include BP Solar, Evergreen Solar, AEE Solar and General Electric. However, the low cost of operation associated with our company gives the product an added advantage making it affordable in the Nigerian market. In addition, once the installation and purchase costs have been covered, the consumer does not incur any additional costs, making the product easy to maintain. This means that advertising costs from the promotion of the product will not greatly affect the price of the product. Due to this fact, the product can be advertised via television commercials, email information cards, newspapers, magazines and through seminars conducted in major towns like Abuja and Lagos. Despite the numerous benefits that the company stands to accrue, there are few disadvantages that Amazing Solar Inc. and its product are bound to face in its penetration of the Nigerian solar energy market, chief of which pertains to the rampant corruption in Nigeria and the uncertainties that accompany penetrating new markets. In addition, the company faces stiff competition from local based companies that have a better understanding of the demographics involved, market structure, culture of the Nigerian people and the general political and socio-economic factors in the country. Another big disadvantage includes the fact that the country is ravaged by the Boko Haram menace, which