For Accounting Questions Relevant for New Businesses

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The paper is written in four sections, dealing with different accounting issues that are relevant for new businesses. The first section looks at the importance and benefit of undertaking a breakeven analysis, demonstrating the way it may be calculated with reference to the fixed costs, the variable costs and the contribution. The second section deals with the importance of cost and budget controls, looking at what they are, how they can be used in the value that they can create. The third section discusses the use of cash flow statements, outlining what they are, and how they can be used. The final section of the paper looks at how and why investment appraisal should be undertaken. Six sources are cited in the bibliography this ten page paper.