Managerial Accounting for Many Corporations, Term Paper

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For example, using the I Tunes store, the firm reported an increase of7% on a quarterly basis. While other products such as portable devices saw an increase in their earnings of 30% in one quarter. These figures are significant, because they are showing how the revenues are accounted for during the actual quarter that they are received. This is what makes their earnings more accurate and reliable. ("Apple," 2011)

How this is System is Applied and Evaluated?

The way that this system is applied, is every quarter the management will provide investors with guidance about the earnings and future projections. If there are any kind of positive or negative changes, managers will let analysts know about what is happening by providing them with a range that is more precise. Once this occurs, is when investors and analysts will be able to effectively evaluate the company. ("Apple," 2011)

The way that this is accomplished is these numbers can be used to decide if the firm is over or undervalued based upon these projections.

Stuck Writing Your "Managerial Accounting for Many Corporations," Term Paper?

For example, when Apple is providing everyone with updates, they are letting them know about the projected earnings per share for the quarter and the year. This information is used to determine the forward price earnings ratio of the company. Once this takes place, investors and analysts will compare these figures with other competitors inside the sector. This is the point that they can make an accurate assessment as to if the price of stock is expensive. At the same time, this is helping them to see how there could be changes taking place from shifts in consumer demand. These different elements are important, because they are showing how Apple is able to provide investors with the most accurate information about changes in revenues and the impact that they will have on the earnings of the firm. ("Apple," 2011).....

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"Managerial Accounting For Many Corporations ", 18 December 2011, Accessed.3 July. 2025,
https://www.aceyourpaper.com/essays/managerial-accounting-corporations-48608