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Unformatted text preview: 142 One example of information about a company in which both internal and external users have an interest is the costs of products sold. Managers within the company use cost information to help determine appropriate pricing for the products sold. External parties use the same information to help analyze the company's performance and ability to generate profit. Another example of information useful to both internal and external users is data about the sales of products. Managers use this information to help determine necessary purchases. External users want to know about product sales to look at profitability and to help analyze future cash flows. Internal and external users both are interested in the profits of the company. External parties use this information to evaluate their decisions to invest in the company. Managers use this information to assess the effectiveness of company goals and operations. Both internal and external parties want to know about the resources available for use in operations. Managers use this information to determine the best way to allocate resources within the company. External parties use this information to evaluate the company's financial position and ability to continue operating. ...
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This note was uploaded on 02/06/2012 for the course ACCTCY 2036 taught by Professor Cunningham during the Spring '11 term at Missouri (Mizzou).
- Spring '11