In class rooms, calculating break-even point is usually easy when the all of the required data is available and ready to be processed. However, it is not as straightforward for an external entity to calculate a company’s break-even since they have only access to publicly available financial statements. Analyzing break-even […]
The contribution margin is the amount remaining from sales revenue after variable expenses have been deducted (Garrison et al., 2017). While the definition is simple, it may not be straightforward to calculate, especially if we only have limited secondary data. In this article, I will provide one illustration of how […]
Aside from its sophisticated manufacturing facility, Tesla has also an intricacy in its organization, which will distinguish its non-manufacturing costs. Its persistence to use direct distribution channels to its customers will differentiate its cost structure compared to other auto companies. This article will examine the selling, general, and administrative costs […]
Tesla is a company known for its innovation in manufacturing electric vehicles (EVs) and clean energy instruments. Tesla manufactures the key module for their EV, such as battery pack, drive unit, and seating, in-house (Tesla Impact Report 2020, 2020). The company manufactures a large number of automobile parts in-house, which […]
To better understand the role of managerial accounting in business, students should go through two sides of a mountain. On one side, business students should learn the underlying knowledge and theories in classes and courses. On the other side, they should also learn from real experience in real business circumstances. […]
Financial statements are not necessarily used only by the company that releases them. Many external parties may have the interest to become the users of financial statements of a company. It is even more favorable to specify the users of the financial information first, as well as the judgment and […]