Allocation

task, it is about determining the optimal risky portfolio which is technical purely. Here, given the set of input list, regardless the risk aversion the best risky portfolio is same for all investors. Similarly, the second task is about the capital allocation, which is personal preference. In such case investor or say client are themselves the decision maker. Similarly, the optimal risky portfolio for various clients/investor can differ as a result of constraints on dividend yield, short sales,…

Question 5 The overhead rate is the total of indirect cost for a specific reporting period, divided by an allocation measure. Overhead rate is the percentage that we get after comparing to the total overhead expenses with the total expenses. Overhead rate has differentiate into 2 types which is blanket overhead rate (single overhead rate) and departmental overhead rate. Blanket overhead rate (single overhead rate) is the most simplistic tradisional costing system. It assign indirect cost…

that the budget data should be presented in a manner that the gender sensitivities of the budgetary allocations are clearly highlighted. In Budget Speech 2005-06, the Finance Minister reaffirmed his commitment to Gender Budgeting and introduced a Gender Budget Statement: ‘... I have included in the Budget documents a separate statement highlighting the gender sensitivities of the budgetary allocations under 10 demands for grants. The total amount in BE 2005-06, according to the statement, is…

strategy” (para. 1). In other words, management accounting focuses on the information that is needed by internal users (Horngren, Harrison, & Oliver, 2012). Therefore, internal users will apply management accounting to evaluate the cost behavior, cost allocation, and activity-based costing in their organizations. In management accounting, “cost behavior refers to how a cost reacts to changes in…

concepts, how to apply them and have a knowledge directly from practitioners rather than purely academics; that is exactly what I expect from an MBA course. I am going to address in this assignment my learnings on the investment process, asset allocation and behaviouralising finance as follow in the next section. 2. Reflections 2.1 Investment Process Before the practical investing course my knowledge in how to select stocks to invest where according to the companies that I felt more…

understand their present capabilities. Through extensive research, we can establish why cost accounting is important to the success of the firm, various methods of cost accounting, and how they are used. From the process of analyzing current needs to allocation of costs for present and future requirements and projects, the use of cost accounting is very important…

assets class, which is very helpful. There is a total of 13 chapters that I went over in the book. Everything started with the first chapter which is about the basis of asset allocation. In this chapter, he mentions about key concepts which are critical to a long-term success. These concepts are investment planning, asset allocation, discipline and commitment, and shortcuts. I learned that I have to have a long-term goal, prepare a good plan and then stick to it to have a great portfolio. There…

Introduction Manufacturing companies, like Hampshire Company, rely on the costing data provided by various costing methods to determine financial successes and downfalls. “By tracking and categorizing this information according to a rigorous accounting system, corporate management can determine with a high degree of accuracy the cost per unit of production and other key performance indicators” (Kucera 2018). Therefore, Hampshire Company has requested that I calculate how traditional and…

agency. Social factors are one of the greatest challenges to one’s agency, depending on multiple interconnected influences such as that from an economical standpoint. In addition, the environment that individuals are in plays a role in determining allocation of time, whether towards leisure or recreational activities. The social, economic and environmental factors around us cause the decision making surrounding leisure and recreation to be susceptible to suggestion. To begin, social factors play…

We can take advantage of erratic behaviour of Mr. Market using the concept of tactical asset allocation strategy. Tactical asset allocation decisions are based on the behaviour of the market. Following this strategy we will book profits when markets have appreciated and invest more when stock prices have fallen. Price Earnings (P/E) ratio is generally used to take tactical decision on asset allocation. Higher P/E ratio indicates that the stock market is expensive and there is probable market…