201. Activity-Based Costing (ABC) focuses on identifying and allocating costs based on activities performed, providing a more accurate understanding of product and service costs.202. Relevant costing considers only the costs and revenues relevant to a specific decision, aiding decision making regarding pricing, product discontinuation, outsourcing, and special orders.203. Standard costing establishes predetermined costs for materials, labor, and overheads, with variances calculated to identify inefficiencies and support corrective actions.204. Performance evaluation and management control involve comparing actual results with predetermined goals and benchmarks, aligning objectives, and providing feedback.205. Financial statement analysis helps assess the financial health and performance of the organization by analyzing ratios, trends, and indicators.206. Strategic management accounting incorporates market trends, competitive intelligence, and non-financial factors to support strategic planning and implementation.207. Finally, decision analysis employs quantitative techniques, such as cost-benefit analysis and risk assessment, to evaluate alternative courses of action and make optimal decisions in uncertain situations.208. By consistently implementing these strategies and insights, nonfinance managers and business owners can not only elevate their company’s financial performance but also empower themselves to make informed decisions that drive the overall success of their organization.209. They include costs like raw materials, direct labor, and sales, and these costs increase as the company produces or sells more products or services.210. Businesses can determine whether they are making a profit or losing money by comparing actual sales to the break-even point.211. They can then implement cost-cutting measures and improve their financial performance by understanding the cost structure and its impact on the break-even point.212. A company can make realistic pricing decisions that keep profit margins, market demand, and cost structure in mind and allow them to reach the breakeven point and achieve profitability.213. By comparing the break-even point to actual and projected sales, businesses can assess their vulnerability to changes in market conditions, competition, and other external factors.214. This will help them make informed decisions about production levels, pricing strategies, and resource allocation, ultimately improving the financial performance of the bakery.215. It is the critical threshold that helps managers assess the financial viability of their operations and make informed decisions.216. By understanding and determining the break-even point, managers can understand the minimum level of sales necessary to cover costs and begin generating profits.217. This provides a clear indication to sales personnel of what the minimum achievement should be to keep the organization profitable.218. Managers are able to use the break-even analysis to evaluate the financial implications of various decisions, like introducing new products, expanding operations, and changing pricing strategies.219. Companies can make the best use of their resources and get the most out of their investments by choosing which investment options are financially viable and likely to be profitable.220. Evaluating investments helps businesses set priorities and put their resources toward projects that align with their strategic goals and have the best chance of success.
