Financial and managerial accounting Research Paper

Financial and managerial accounting - Research Paper Example The budget would help Groovy Music to estimate their regular demand which in turn, would be helpful in deciding the product mix. Also, by preparing Activity Based budget, Groovy Music may be able to allocate their costs better and hence, get a clear picture about which order costs more. Essay 2 - The Woods and Waters Company Service Division: Particular Amount ($) Revenue (8000 x $50) 400,000 Less: Total Operating Costs (given) 280,000 (a) Net Profit 120,000 (b) Total Operating Assets (given) 400,000 Return on Investment (a/b x 100) 30 % Irrigation Division: Particular Amount ($) Revenue (250 x $5000) 1,250,000 Less: Total Operating Costs (given) 1,000,000 (a) Net Profit 250,000 (b) Total Operating Assets (given) 1,000,000 Return on Investment (a/b x 100) 25 % Company as a whole: Particular Amount ($) Revenue (400,000 + 1,250,000) 1,650,000 Less: Total Operating Costs (given) 1,280,000 (a) Net Profit 370,000 (b) Total Operating Assets (given) 1,400,000 Return on Investment (a/b x 100) 26 % Considering just the ROI, it can be concluded that the Service Division has performed