i came accross a question on financial management saying that the sales unit is highly uncertain and standard deviation is expected to be as high as 30percent.. please can someone explain this statement to me.

The question is all about risk and uncertainty in management accounting.

For example if u are venturing into a business, u must ensure that the financial risks involved are not so high that u can not recoup ur initial inflow/investment.

So from the question, most times u will be asked to calculate the differences in risk levels between two or more businesses/projects in order to ascertain the one with the most financial viability.

The 30 % is the benchmark for the risk level assessment, if the risk percentage u get after calculation exceeds 30% it means the business is not viable as u may not be able to recoup ur money within a reasonable space of time or specified number of years....only businesses with 30 percent or less risks should be carried out.

Hope this helps.

thanks bro it really helped....

Dfinex:
The question is all about risk and uncertainty in management accounting.

For example if u are venturing into a business, u must ensure that the financial risks involved are not so high that u can not recoup ur initial inflow/investment.

So from the question, most times u will be asked to calculate the differences in risk levels between two or more businesses/projects in order to ascertain the one with the most financial viability.

The 30 % is the benchmark for the risk level assessment, if the risk percentage u get after calculation exceeds 30% it means the business is not viable as u may not be able to recoup ur money within a reasonable space of time or specified number of years....only businesses with 30 percent or less risks should be carried out.

Hope this helps.